Infinera scores 10 DTN-X customers

2012-08-04 17:57:11

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Infinera scores 10 DTN-X customers
Infinera Corp. (NASDAQ: INFN) revealed today in announcing its fiscal second quarter 2012 numbers that it has secured purchase orders for its new DTN-X platform from 10 customers, three of whom are new to the company. Some of the DTN-X successes have come at the expense of the company’s established DTN platform, which is one reason that revenues for the second quarter came in at the lower end of guidance.The company recorded GAAP revenues for the quarter ended June 30, 2012 of $93.5 million, on the low end of its guidance of $92 million to $100 million. The figure represented a downturn both sequentially (1Q12 revenues came in at $104.7 million) and year-on year (the company garnered $96.0 million in the second quarter of 2011).However, the second quarter did not include revenues from the DTN-X sales, which should begin to appear at significant levels in the third quarter, Tom Fallon, Infinera president and CEO, told participants in an earnings call today. CFO Ita Brennan said on the call that the company should see revenues based on non-GAAP parameters of $106 million to $115 million in the third quarter as a result.Infinera introduced the DTN-X last September (see "Infinera debuts DTN-X packet-optical transport platform with 500G PIC, OTN/MPLS support") and announced Cable&Wireless Worldwide and the European research and education network operator DANTE as customers earlier this year (see "Cable&Wireless Worldwide chooses Infinera's DTN-X for Europe Persia Express Gateway" and "DANTE selects Infinera DTN-X platform for GEANT Research and Education Network"). Now, the platform has proven popular across several customer segments, from Tier 1 carriers to Internet content providers to bandwidth wholesalers, Fallon said. However, some Infinera customers have reduced their DTN purchases in favor of the DTN-X, he admitted. Nevertheless, Fallon stressed that demand for the lower-capacity DTN will continue, citing two new DTN customers during the second quarter as proof.Nevertheless, macroeconomic pressures worldwide have led Infinera management to pull back on their revenue projections for the second half of the year. Brennan told call participants that Infinera now expects revenues in the second half of the year to range between $230 million and $245 million, versus a previously forecasted top end of $260 million.Rounding out the second quarter numbers, GAAP gross margin was 35% versus 39% in the first quarter and 39% in the year-ago quarter. GAAP net loss for the 2012 second quarter was $29.5 million ($0.27 per share), greater than the $20.6 million ($0.19 per share) net loss in the previous quarter and $24.2 million ($0.23 per share) net loss in the same quarter of 2011.
PLDT deploys Ciena 100-Gbps ROADM and OTN switching technology
Philippine telecom incumbent PLDT (NYSE: PHI, PSE: TEL) says it will increase the capacity and service flexibility of its backbone Domestic Fiber Optic Network (DFON) via coherent 100-Gbps technology and Optical Transport Network (OTN) switching capabilities from Ciena Corp. (NASDAQ: CIEN).This upgrade of PLDT's DFON network is part of the company's two-year network modernization program launched in 2011. The network is expected to be ready for commercial services before the end of this year. The project entails installing new Ciena electronics in the nodes of our high-usage loops and connecting them to existing fibers. PLDT will deploy the Ciena 6500 Packet-Optical Platform with WaveLogic coherent optical technology, integrated ROADM capabilities, and OTN switching as the cornerstone of the upgrade.“As the first 100G network in the Philippines, this deployment will add significant bandwidth scalability, reliability, and intelligence to PLDT’s network infrastructure. The network upgrade will complete PLDT’s core network modernization program and support the delivery of next-generation services to customers such as fiber-to-the-home, fiber-to-the-building, LTE/4G, IPTV, and triple-play services,” PLDT President and CEO Napoleon L. Nazareno said.The network will not only benefit PLDT but its cellular subsidiaries, Smart Communications and Sun Cellular, Nazareno added.“With this first deployment in the Philippines of coherent 40G, 100G and OTN switching solutions from Ciena, PLDT is strengthening its leadership position and further differentiating its network in the highly competitive Philippines marketplace,” added Anthony McLachlan, Ciena vice president and general manager for Asia Pacific.
Oclaro, Opnext merger completed
Optical component and subsystem vendors Oclaro, Inc. (NASDAQ: OCLR) and Opnext, Inc. (NASDAQ: OPXT) have closed their planned merger, creating the second largest supplier of optical communications components, modules, and subsystems, behind Finisar. The deal, which hit a temporary snag when Oclaro had to work overtime to receive shareholder approval to issue new stock to foot the bill, closed this past Monday, July 23, the companies say.The two companies announced plans for the merger this past March (see “Oclaro, Opnext to merge”).Opnext shareholders received a fixed ratio of 0.42 shares of Oclaro common stock for every share of Opnext common stock. As a result, Oclaro shareholders now own 58% of the merged company, which will continue to operate under the Oclaro name (albeit with a shiny new logo).Oclaro chief Alain Couder was named chairman and CEO of the combined company, with Opnext Chairman and CEO Harry Bosco taking a seat on the board of directors. The board also includes Joel A. Smith III as lead independent director and Edward Collins, Kendall Cowan, Greg Dougherty, Lori Holland, Dr. David Lee, Marissa Smith, and Bill Smith as independent directors.The executive team reporting to Couder includes:Jim Haynes, President, Global Business Yves LeMaitre, Chief Commercial Officer Terry Unter, Chief Operating Officer Kei Oki, President, Oclaro Japan, Inc.Tadayuki Kanno, Chief Operating Officer, Oclaro Japan, Inc.; GM, Modules and Devices Business Unit Jerry Turin; Chief Financial Officer Kate Rundle, Executive Vice President, General Counsel and Corporate Secretary Kathy Zwickert, Executive Vice President, Human Resources and Communications Bob Quinn, Chief Information Officer.Oki and Kanno are the only members of the team from Opnext.The combined company currently has approximately 3200 employees worldwide and $833 million in combined revenues for the fiscal year ended July 2, 2011."The new Oclaro boasts one of the broadest and vertically integrated product lines in the industry. Our vision is that the power and speed of light will change the way we live and work," said Couder via a press release that announced the closing of the deal. "By transmitting data over fiber at increasing speeds, our customers have made possible new and fast growing applications such as social networking, video streaming, and cloud computing. The ability to control the power of lasers as a heat and energy source is transforming healthcare, material processing, and consumer electronics. Through this merger, we have assembled the optical technologies, products and expertise at the heart of this new world of innovation."
The above information is edited by 10GTEK.
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