Backhaul providers report Q2 Financial results

This month backhaul equipment providers began releasing financial results for the second quarters of 2011. Overall, most backhaul providers posted lower-than-expected results, with Calix being one of the only companies to make a profit this quarter. Generally, loss in revenue was unique to each company, with a slow market having a small contributing factor.

Calix

Calix Inc (Petaluma, Calif., U.S.A.), a provider of broadband communications systems and software, reported a revenue growth of 36.7% compared to the second quarter of 2010, from 71.1 million in the second quarter of 2010, to $98.0 million in the second quarter of 2011.

Having finalized its acquisition of Occam Networks in February of this year, Calix set a new revenue record according to Carl Russo, president and CEO of Calix.

"In our first full quarter of operations after closing our acquisition, we executed well across all areas of the business, and reported results that were ahead of expectations," said Russo.

Non-GAAP (generally accepted accounting principles) net income for the Q2 was $7.8 million, or $0.16 per fully diluted share, an increase of 40.8% compared to non-GAAP net income of $5.5 million, or $0.14 per fully diluted share, for the second quarter of 2010.

Calix did experience a GAAP net loss in Q2 of $17.6 million, or $(0.38) per basic and diluted share, compared to a GAAP net loss of $3.2 million, or $(0.09) per basic and diluted share for the second quarter of 2010.

Zhone

Zhone Technologies, Inc. (Oakland, Calif., U.S.A.), provider of telecommunications networking equipment, reported a revenue lose in the second quarter of 2011.

Revenue for Q2 fell to $31.3 million from $33.3 million in the year-ago quarter. Revenue did increase compared to $29.6 million for the first quarter of 2011. GAAP net loss for the second quarter of 2011 was $1.9 million or $0.06 per share compared with a net loss of $2.4 million or $0.08 per share for the first quarter of 2011 and a net loss of $2.0 million or $0.07 per share for the second quarter of 2010.

Adjusted earnings before interest, taxes, and depreciation (EBITDA) was a loss of $1.1 million for the second quarter of 2011, compared to a loss of $1.8 million for the first quarter of 2011 and a loss of $0.8 million for the second quarter of 2010.

"Quarterly revenue grew by 6% sequentially keeping us on track to achieve our financial goals for the year," stated Mory Ejabat, Zhone's chief executive officer.

According to Kirk Misaka, chief financial officer and secretary at Zhone, the company expects the fourth quarter of 2011 to be better than the third quarter, citing international holidays as the reason for a weak third quarter.

DragonWave

DragonWave Inc. (Ottawa, Canada), a supplier of broadband wireless networking equipment, reported a fall in revenue from $15.1 million in the fourth quarter of 2011, to $11.0 million in the first quarter of 2012. The company experienced a net loss of $9.9 million, or ($0.28) per diluted share.

Gross margin for the first quarter was 42.0%, compared with 43.6% in the year-ago quarter.

One major factor contributing to DragonWave’s fall in revenue is its partnership with Clearwire, who did not contribute to DragonWave’s revenue this quarter.

"We are engaged in numerous promising opportunities in markets throughout the world, including North America, Latin America, Europe and Asia and we remain positive about our prospects. While we cannot be certain about the exact timing for each opportunity, we maintain our view that a number of them have the potential to be landed during the second-half of this fiscal year," said Peter Allen, DragonWave president and CEO.

DragonWave expects revenue for the second quarter of fiscal year 2012 to be in the range of $12 million to $15 million.

Juniper

Juniper Networks (Sunnyvale, Calif., U.S.A.), a provider of IP network products, on Tuesday reported second quarter financial results that fell below projections, according to a Reuters report.

Juniper reported that net revenue for Q2 2011 increased 15% on a year-over-year basis, and increased 2% sequentially, to $1.12 billion. But Wall Street predictions had the company at an estimated revenue of $1.15 billion.

In the Reuters report, Juniper said that businesses delayed spending, U.S. budget cuts and the aftermath of the earthquake and tsunami in Japan all played a factor in the lower-than-expected results.

The Company posted GAAP net income of $115.6 million, or $0.21 per diluted share, and non-GAAP net income of $167.2 million, or $0.31 per diluted share, for the second quarter of 2011.

"Juniper's results reflect momentum in our routing business and a return to solid performance in switching. A number of factors, however, including mixed signals in the macro economy, impacted our performance this quarter," said Kevin Johnson, chief executive officer at Juniper Networks.

Juniper's operating margin for the second quarter of 2011 decreased to 15.3% on a GAAP basis from 16.1% in the first quarter of 2011, and from 18.9% in the prior year second quarter. Non-GAAP operating margin for the second quarter of 2011 decreased to 21.6% from 22.3% in the first quarter of 2011 and from 23.9% in the prior year second quarter.

Juniper estimates revenue for the third quarter ending September 30, 2011, to be in the range of $1.070 billion to $1.120 billion.

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