& 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.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
LRTV Custom TV
Mastercard: Payment From Every Device

3|21|17   |   5:55   |   (0) comments


A world where everything and everyone is connected creates new points of interaction for commerce. These digital experiences cannot be developed in isolation and instead require an ecosystem to drive mass consumer and enterprise adoption and create better consumer engagement. Predicting when that growth will happen is difficult, but always keeping the end user in ...
LRTV Interviews
InterDigital's Role in the 5G, IoT Era

3|21|17   |   05:47   |   (0) comments


Alan Carlton, managing director and VP for Europe at InterDigital, talks about the company's role in 5G projects in Europe and the prospects for the company in the IoT market.
LRTV Interviews
Lessons Learned From Digital Transformation

3|21|17   |   05:51   |   (0) comments


Ravi Palepu, global head of Telco Solutions at Virtusa, talks about some key takeaways from telco digital transformation experiences during the past couple of years.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: Italy First Pasta the Post for 5G
Paul Rainford, Assistant Editor, Europe, 3/17/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
5G Faces a Marathon, Not a Sprint
Iain Morris, News Editor, 3/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
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.