Light Reading
What do Tellabs and Sycamore have in common? One less thing, as of Friday

Tellabs vs. Sycamore

Craig Matsumoto
Valley Wonk
Craig Matsumoto
2/1/2013
50%
50%

Here's a sobering outlook for Tellabs Inc.: "The mostly likely scenario appears to be a slow wind-down during which most of the cash is returned to shareholders," writes analyst Mike Genovese of MKM Partners, in a report issued Friday. In other words, he thinks Tellabs could go "gently into that good night." That's what he titled his report, anyway. Coincidentally, that's what Sycamore Networks Inc. did on Friday. Completing a plan laid out in October, Sycamore's shareholders voted to liquidate the company, minus the Intelligent Bandwidth Management business, which got sold to Marlin Equity Partners. (See Sycamore Prepares to Shut Down.) Both companies were optical high-fliers around the turn of the century that found themselves with lots of cash after the bubble peaked. What they've got in common is that neither managed to build a fully revived business from that bankroll. But Tellabs tried. Sycamore, by contrast, seemed to shore up for the long winter. Even in early 2005 -- eight years ago! -- we were talking about Sycamore possibly closing up shop. (See Will Sycamore Call It a Day? and Sycamore Being Sycamore.) Tellabs, meanwhile, acquired Advanced Fibre Communications (AFC) in 2004 for $1.5 billion to move into the access business, only to find out how unkind a business it is. By 2008, it was clear Tellabs needed another new direction. (See Tellabs Kills Its Verizon GPON Efforts and TLAB Shakeup Coming.) More recently, Tellabs had a couple of flops -- the SmartCore 9100 for mobile-network cores and the 9200 edge router, which the company discontinued on Thursday. (See Tellabs Axes Product, Cuts Jobs.) It's not the greatest highlight reel, but what does Sycamore have to show for the past several years? A story in The Wall Street Journal Friday notes Sycamore "distributed more than $750 million in special dividends over the past three years." Maybe that's nice math for shorter-term shareholders, but I think most of us would prefer to see a company identify and invest in evolutionary market strategies, much like Tellabs continues to do. — Craig Matsumoto, Managing Editor, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
hoytaxtontrio
50%
50%
hoytaxtontrio,
User Rank: Light Beer
2/4/2013 | 9:48:41 PM
re: Tellabs vs. Sycamore
-áBrook,
Yes.-á As soon as I hit the send button, I thought of them.-á And I'm old enough to know better..-á :-)

I guess I should've clarified that and said within the last 50 years.-á The companies on your list (and you can include Alcatel, Siemens, etc.) are/were all big enough to sustain true in house R&D that includes basic research (PARC, Thomas Watson Research, Bell labs).-á Intel is the best example in that they made their initial fame in memory and then morphed to processors when memory was commodotized by the Japanese.

Hoyt
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
2/4/2013 | 5:32:30 PM
re: Tellabs vs. Sycamore
hoy,

How about....Xerox, IBM, AT&T, HP, Intel as examples off the top of my head.

seven
hoytaxtontrio
50%
50%
hoytaxtontrio,
User Rank: Light Beer
2/4/2013 | 4:38:43 PM
re: Tellabs vs. Sycamore
-áI'm hard pressed to think of a company founded on innovation that went beyond it's first trick by truly innovating again organically.-á Apple is about the only one I can think of and now with Jobs gone, will they be able to do it again?
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Beer
2/4/2013 | 3:04:28 PM
re: Tellabs vs. Sycamore
It is really surprising that Sycamore,knowing its promoters background and roots in innovation should just get into sunset with dividends payout.The hey days of Optical boom and later developments in Optical market made this good company exiting the scene! Lets see if Tellabs reinvents itself and create new Network niche to stay in the reckoning? Vishnu Goel T&M +919810101238
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Valley Wonk
Comcast joins Google in asking for a flexible-rate optical standard, rather than 400G or terabit, but that's easier said than done
Cisco, Juniper and other more traditional Interop speakers might get overshadowed by the forces of virtualization
The Open Networking Summit has climbed the hype curve, but the conference should cling to its roots as a techie discussion forum for software-defined networking
The coalition's chairman says all these companies plan to further the SDN cause and don't have a 'nefarious' angle
Big vendors are reportedly banding together to unify SDN's approach but is it more about steering the conversation?
Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed