Fiber series fourth week news Abstract 1

2012-01-22 11:41:06

Week News Abstract For Fiber Series in 10GTEK
The abstract is mainly about the optical communication related products,including: FTTH,GPON,EPON,SFPPLC,PTN,ODN,Optical module,Optical devices,optical communications,Optical transceiver module,Etc.

After stormy year, JP Morgan forecasts Cisco rebound

Cisco Systems Inc. kicked off the new year with an upgrade from J.P. Morgan, which argued that the "perfect storm" Cisco endured last year

will probably not be repeated in 2012.

Shares of Cisco recently traded up 4.5% to $18.84 as J.P. Morgan raised its rating to overweight from neutral and lifted its target price

to $21 from $19 a share.

"We believe Cisco encountered a perfect storm of multiple small issues in its fiscal year 2011 [that] added up to a material year-over-year

decline in gross margin," analyst Rod Hall said in a research note. "We do not believe this is likely to repeat in fiscal-year 2012 as many

of these small problems have been addressed, in our opinion."

Cisco had struggled with a number of challenges, including more intense competition, a weakening public-sector market for its gear and what

analysts saw as overaggressive expansion into new markets. J.P. Morgan said the company appeared to be suffering a "death by 1,000 cuts."

Cisco had spent most of the year retuning its strategy. The company embarked on a major reorganization, cut its work force and junked its

Flip video camera business.

The company was already winning praise for the changes late last year. J.P. Morgan said Cisco was poised to get stronger in 2012,

explaining,"We do not believe it is likely that this many things go wrong again."

Cisco will also get a lift from at least one thing going right, according to J.P. Morgan, which sees U.S. federal spending bouncing back

after a sluggish year.

"Our proprietary analysis of 30 [agency] budgets implies that spending will increase in fiscal year 2012 after being down in fiscal year

2011 and may act as a tailwind for Cisco," Hall wrote.
Huawei’s Work in Iran May Violate U.S. Sanctions, Lawmakers Say

Six U.S. lawmakers urged the State Department to investigate whether Huawei Technologies Co. violated U.S. law by supplying sensitive

technology to Iran.

Huawei, China’s largest maker of phone equipment, said Dec. 9 it would voluntarily restrict business in Iran because of that country’s “

increasingly complex situation.” The Shenzhen, China-based company said it wouldn’t seek new customers in Iran and will limit the scope

of business with existing clients.

While calling Huawei’s decision on Iran a “positive step,” the lawmakers in a Dec. 22 letter to U.S. Secretary of State Hillary Clinton

said the company’s “previous actions and continuing service of existing contracts with Iranian clients may violate” an Iran sanctions

law passed in 2010. The letter was released yesterday by the office of Representative Sue Myrick, a North Carolina Republican.

The law, the Comprehensive Iran Sanctions, Accountability and Divestment Act, prohibits the U.S. government from “entering into or

renewing a contract with a company that exports sensitive telecommunications technology to Iran,” the lawmakers wrote.

The letter was signed by Republican Senators John Kyl of Arizona, Jeff Sessions of Alabama and James Inhofe of Oklahoma; Democratic Senator

Sheldon Whitehouse of Rhode Island; and Republican Representatives Frank Wolf of Virginia and Myrick.

The State Department press office didn’t immediately respond to a request for comment.

‘Strict Compliance’

Prior to its Dec. 9 announcement, “Huawei’s business in Iran was limited to providing commercial-grade telecommunications equipment to

commercial operators built to global standards in strict compliance with all international laws and regulations, as well as U.S. and other

sanctions regimes,” William Plummer, a Washington-based spokesman for Huawei, said in an e-mail yesterday.

Huawei said in November that it had sold telecommunications equipment and a “mobile news delivery platform” to MTN Irancell

Telecommunications Services Co., Iran’s second-largest mobile provider, and denied the gear was intended for use in censorship.

In their letter, the U.S. lawmakers cited Wall Street Journal and Bloomberg News reports in October that Iranian authorities use technology

purchased from foreign companies to monitor dissidents.

The State Department should also review whether telecommunications companies operating in Iran, including Huawei, have violated other U.S.

sanctions, “such as those prohibiting companies from engaging in business with the Islamic Revolutionary Guard Corps,” according to the


Security Concerns

Huawei’s efforts to expand in the U.S. have run into opposition from lawmakers who allege that the company is linked to China’s military,

an assertion that Huawei has denied. The U.S. Commerce Department said in October it had barred Huawei from participating in a nationwide

emergency network, citing national security concerns.

The U.S. House Intelligence Committee said in November it had opened an investigation into the possible security threat posed by Chinese

phone-equipment makers such as Huawei. The panel said it will focus on whether the companies’ expansion in the U.S. provides opportunity

for Chinese espionage and imperils the U.S. telecommunications infrastructure.
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