& cplSiteName &

EXFO Bolsters Brix With OSS Acquisition

Ray Le Maistre
4/8/2014
50%
50%

Canadian test and measurement specialist EXFO has added to its service assurance portfolio with the acquisition of all the assets and intellectual property rights of ByteSphere, a Boston, Mass.-based developer of network performance management systems. (See EXFO Acquires ByteSphere Assets.)

Financial details were not disclosed.

ByteSphere's key products are its OidView performance management tool, which uses SNMP (Simple Network Management Protocol) to monitor the state of network elements, and the Jaguar SX system, which collects, analyzes and reports on network events. The company, which was founded in 2007 with funding from angel investors, and which has since grown using its operating income, boasts more than 800 service provider and enterprise customers, including AT&T, Bell Canada, Cox Communications, Deutsche Telekom, KDDI, Sprint, TeliaSonera, and Verizon Wireless.

Quebec City-based EXFO Inc. (Nasdaq: EXFO; Toronto: EXF) is adding ByteSphere's assets to its existing Brix Service Provider Information Technology (SPIT) capabilities, which have been part of the company since 2008. (See EXFO Builds With Brix.)

The company's CEO, Germain Lamonde, noted in the acquisition announcement that the ByteSphere assets will be of particular importance in the monitoring and assurance of wireless small cell, backhaul, and metro Ethernet networks.

The move appears to be part of EXFO's increasing focus on the testing and assurance of mobile network infrastructure: It recently announced a suite of VoLTE monitoring capabilities as part of its BrixWorx service assurance system, and enhanced its fiber-to-the-antenna (FTTA) test, activation, and troubleshooting solution with the integration of spectrum analyzer capabilities from partner Rohde & Schwarz GmbH & Co. KG . (See EXFO Unveils VoLTE Service Assurance Suite.)

And like any SPIT vendor with a pulse, EXFO is also investing time, effort, and resources into figuring out how networks and applications can be tested, monitored, configured, and provisioned once NFV and SDN capabilities and introduced into live telco networks.

That doesn't mean EXFO has taken its eye off the ball in its core optical text system market, where it has recently announced new products. (See EXFO Intros New 10G Multiservice Tester and EXFO Launches FTB-2 Pro Test Platform.)

It seems clear that the company needs to diversify into new markets such as mobile and SDN/NFV, though, as it recently announced an 18% year-on-year dip in revenues to $51.2 million for its fiscal second quarter ending February 28. That blip may be temporary, though, as the company also noted that its bookings were up from a year ago, at $58.7 million, and it expects to report revenues of between $60 million and $65 million for the fiscal third quarter ending in May.

EXFO's share price closed Monday at $5.03, giving the company a market capitalization of about $300 million.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Sabre
4/13/2014 | 12:20:59 PM
Re: EXFO
This T&M vendor is moving in the right direction ie upping the solution vector in terms of value chain to OSS/BSS arena. But it has a long way to go before it reaches a critical level where it can merge/acquire a tectonic shift in growth.I think a level of profitable sales revenue of around half a Billion is necessary alongwith couple of major Asian operators as their marquee customers.Vishnu Goel T&M +919810101238
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
4/8/2014 | 12:33:17 PM
Re: EXFO
I think service assurance is the key -- that's the thing on which service providers most need to get a strong grip. Because of the vareity of moving network parts and the -- hopefully coming -- variety of services, they can no longer afford to see test and measurement as a separate function, once stuff is out of the lab and in the real world. 

I think we'll see more and more of these kinds of connections.
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
4/8/2014 | 11:09:25 AM
Re: EXFO
If the likes of EXFO were to be snapped up I imagine it would have to be another major text vendor doing the swooping, and there's a lot of overalp between many of the test vendors, so I imagine the M&A cycle will contibue to be along the lines of small, strategic acquisitions such as this one.

THis is a ripe time for test and service assurance firms, I think, as long as they get to grips with the impact that telco data center, cloud, SDN, NFV and LTE will have on the busineses of their customers.

And yeah -- that's going to be a tough task but not insurmountable for companies with focus and proper R&D.
DOShea
50%
50%
DOShea,
User Rank: Blogger
4/8/2014 | 9:02:51 AM
EXFO
This company is definitely broadening its appeal. Not long ago it did look like the sort of specialist that would end up in the hands of a larger vendor. That could still happen, I guess, but right now, it's the one doing the buyingg, albeit on a smaller scale.
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.