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Today's report from Web Editor
Susan Rush
• Harmonic Downgrades Q3 Sales
• Cisco Acquires Radiata
• Lucent Sells To Tyco
• Broadband Briefs
Harmonic Downgrades Q3 Sales Harmonic
Inc.'s stock price is taking it on the chin, falling 8.3 percent to
$13.06 in early trading today, following the company's downgrade of its
third quarter results. Last month, Harmonic announced sales of $72.3 million
for the quarter, but after one of its broadband access networks customers
informed them it would be returning $4.1 million worth of equipment,
Harmonic revised its numbers to $68.2 million.
Harmonic also revised its net loss for the quarter to $89.7
million, or $1.55 per share, versus the previously reported loss of $88.7
million, or $1.54 a share.
Harmonic enabled the U.S.-based customer to pull out of
the deal in order to maintain an ongoing working relationship. The company
was able to grant the customer's request to return the equipment because it
had not yet filed its quarterly earnings with the U.S.
Securities and Exchange Commission.
Related Stories:
Harmonic
Slightly Off Key, BroadbandWeek Direct, 10/5/00
Second Shoe
Drops, As Does Harmonic Stock, Multichannel News, 7/3/00
Cisco Acquires Radiata
The ink has not even dried on the deal Cisco
Systems announced yesterday with Active Voice, and the networking giant
unveils another one. Cisco plans to acquire Australia's Radiata
Inc. for $295 million in stock.
The supplier of chipsets for high-speed wireless
networks fits nicely with another Cisco buy, Aironet
Wireless Communications Inc. Radiata's chipsets will be integrated into
Cisco's Aironet wireless LAN products.
Before this deal, Cisco already had an existing
11 percent stake in Radiata. The acquisition will be accounted for as a
purchase and is expected to close in the second quarter of Cisco's fiscal
year 2001.
In another move in the high-speed wireless
arena, Cisco unveiled plans to ramp up deployment of its Internet
Mobile Office. The system enables traveling business professionals to
connect to the Internet and their corporate intranet via a broadband
connection. The Mobile Office is already available in 300 U.S. locations,
with plans to deploy several thousands in airports, hotels, convention
centers and restaurants worldwide.
Related Stories:
Cisco
Acquires Active Voice, BroadbandWeek Direct, 11/13/00
Laying The New
Broadband Foundation, Wireless Week, 2/28/00
Lucent Sells To Tyco
Enforcing its commitment to further its
broadband and wireless Internet markets, Lucent
Technologies sheds its Power Systems business. Tyco
International Ltd. will pay $2.5 billion in cash for the unit, a major
provider of powering systems to cable operators and other broadband
communications service providers. Investors reacted favorably to the
sale, Lucent's stock rose 88 cents to $23.63 as of 11:57 a.m. EST.
Lucent has been struggling to find its way since
it fell below analysts' expectations for the quarter ended September 30. The
company has already taken major steps to refocus its business, first by
replacing CEO Richard McGinn with interim CEO Henry Schacht, and then
announcing plans to trim the fat -- the company announced layoffs of 240
employees this month.
The sale, which is subject to regulatory
approval, is expected to close by the end of the year.
Related Stories:
Lucent
Streamlines, BroadbandWeek Direct, 11/8/00
Lucent
Falls Below Expectations, BroadbandWeek Direct, 10/11/00
Broadband Briefs:
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Eureka Broadband Corp.
merges with Gillette Global Network. The new
company will offer a complete suite of broadband services including voice
services, managed applications, hosting and IT outsourcing.
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Copper Mountain Networks
Inc. launches its CopperChannel Program to accelerate the expansion of its
DSL services into new worldwide markets. Local resellers will target new
customers for the company in North America, Europe and Asia.
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iClips provides Web users a
chance to express their opinions about the 2000 Presidential elections in full
streaming video. The online community is located at www.whoshouldwin.com.
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PhatPipe Inc. buys $5
million worth of equipment from fixed wireless provider BreezeCOM.
The agreement enables PhatPipe to offer broadband data and voice services to
industrial property owners and tenants.
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Acer Inc. incorporates Tvia
Inc.'s CyberPro5050 processor into its digital broadband set-top box. Tvia's
streaming media processor enables television programs and Internet content to be
displayed seamlessly and in real time on a standard TV.
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BroadJump unveils a
broadband service fulfillment solution that provides ongoing fulfillment of multiple
broadband services. The system automates the delivery of applications and
content.
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OpenTV and Motorola
Inc.'s Broadband Communications Sector sign several business initiatives,
including the formation of a new joint venture unit to assist digital ITV
deployments.
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