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WLAN: Winners & Losers

It should be clear to everyone by now that the wireless-LAN shakeout is in full swing, with AirFlow Networks Inc., Bermai Inc., and Legra Systems Inc. all hitting the "eject" button over the course of last week (see Bermai Butts Out, AirFlown?, and Exit Legra, Stage Right).

But in the game of life, Bob, there are both losers and winners. And WLAN-switch startup Airespace Inc. looks like this week's big winner.

The latest wireless-LAN shipments report from the Dell'Oro Group says that the startup is starting to challenge more established players like Proxim Corp. (Nasdaq: PROX) in the overall enterprise wireless LAN space, not just in switch sales.

Greg Collins, senior director of wireless LAN research at Dell'Oro, says that if you include Airespace's OEM partner sales, the firm's shipments are "slightly under Proxim for the second quarter." "For the third quarter they're growing fast... I haven't done the numbers yet," Collins says.

But even without the big numbers, the switch/appliance sales for the second quarter tell a story. Taking Airespace's own brand shipments alone, Dell'Oro puts the startup second only to Symbol Technologies Inc. (NYSE: SBL) in this fast growing market.

Table 1: Total Worldwide WLAN Switch / Server / Appliance Revenues
 Total Market   2Q04   Qtr./Qtr. 
Manufacturer Revenues $M $38M 125%
Vendor
Symbol 1 256%
Airespace* 2 48%
Bluesocket 3 44%
Others, including Aruba, Avaya, Hewlett-Packard, Trapeze Networks, and additional vendors. - 64%
*Airespace branded only
Source: Dell'Oro Group


— Dan Jones, Site Editor, Unstrung

vicks2302 12/5/2012 | 1:11:40 AM
re: WLAN: Winners & Losers Can anybody pls tell me the connectivity (latency) time for Nextel's, Verizon's and Sprint's Push to Talk service. Thanks
lrmobile_wifiguy 12/5/2012 | 1:11:50 AM
re: WLAN: Winners & Losers The list is below. I suppose "impressive" is a highly subjective term. I see about 3 interesting customers on there. This is a dead end conversation. Let's resume it next quarter when the numbers come out.

Duke Medical Center
NTT DoComo USA
Fidelity (doesn't count, they invested)
Toledo Public Schools
Pacific Exchange
Central Michigan University
Gallaudet University
Tokyo Law School
Suffolk College
Cornell University (funny, chantry said they won this too)
George Eliot Hospital
Overlake Hospital Medical Center
wifigod 12/5/2012 | 1:11:52 AM
re: WLAN: Winners & Losers I checked out their web site for announced
customers and see much more than 3. It is
a pretty impressive list of customers.
lrmobile_wifiguy 12/5/2012 | 1:11:58 AM
re: WLAN: Winners & Losers That doesn't mean that there wasn't a stocking order involved somewhere. The numbers shift too dramatically from last quarter for there not to be an anomaly. If they are moving that much direct, it sure isn't being seen by the market. Who is buying all this gear? They have like 3 customers announced. The rest of their press releases are self gratifying blather. (Airespace removes a rib and services itself - story at 11).
wifigod 12/5/2012 | 1:12:01 AM
re: WLAN: Winners & Losers Dude,

The report clearly says the numbers are for their own branded equipment. I wonder what the numbers would be if they included the channel sales.
lrmobile_wifiguy 12/5/2012 | 1:12:02 AM
re: WLAN: Winners & Losers Until they get done stuffing the channels of all of those OEMS. I have a hunch that their revenue will see a significant drop in the next couple of quarters. Even better is all of the channel conflict they are creating with the OEMS. You know Alcatel loves Nortel and the guys that sell direct are having a great time getting their deals stolen by the Nortel guys. Sounds like a great model to me. Keep it up! (for as long as the house of cards will stand)
scseth 12/5/2012 | 1:12:04 AM
re: WLAN: Winners & Losers
Perhaps I have not had enough coffee today, but can someone explain that table at the end of this article? Did something get lost in translation?

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