Nov. 20, 2014, 1:38 PM
- Optical networking hardware vendors and their component suppliers are turning in a good day. The gains come a day after component vendor Oplink announced it's being acquired by Koch Industries for $445M, and will be managed by connector maker Molex (a Koch subsidiary).
- RBC thinks Koch's entrance into the slumping component industry could trigger further consolidation. "Current fab utilization rates remain low ... with optical component vendors unable to charge a premium for their innovation. Gross margins are currently weighed by competitive pressures with optical component makers willing to cut pricing to account for high fixed costs."
- The firm believes Finisar (FNSR +1%) could be a buyer, and JDS Uniphase (JDSU +1.5%) and Oclaro (OCLR +7.1%) sellers. JDS, set to spin off its component unit, is facing activist pressure to put the business on sale.
- Meanwhile, Ciena (CIEN +2.8%) announced this morning it's partnering with Avaya to offer an enterprise solution that pairs its optical networking and integrated optical/Ethernet gear with Avaya's Ethernet switches. Like peers, Ciena is trying to lower its dependence on pressured carrier capex budgets.
- Other gainers: AFOP +3.7%. NPTN +3.3%. ADTN +2.7%. INFN +1.9%.
Aug. 14, 2014, 11:46 AM
- Ciena (CIEN +1.9%) is catching a bid following vague M&A chatter. The gains come even though Cisco just reported an 11% Y/Y drop in service provider orders for the July quarter, and stated it expects carrier demand to remain soft for several quarters.
- Ciena fell yesterday in response to JDS Uniphase's weak guidance and cautious CC commentary. Its FQ3 report is due on Sep. 4.
Feb. 4, 2013, 11:10 AMA slew of telecom hardware and software firms are higher following Oracle's deal to acquire Acme Packet (I, II). The big winners include VoIP/unified communications software providers BroadSoft (BSFT +7.7%) and AudioCodes (AUDC +4.2%), and volatile deep packet inspection hardware plays Allot (ALLT +4.6%) and Procera (PKT +5.9%). Juniper (JNPR +1.4%), F5 (FFIV +1.2%), and Ciena (CIEN +1.6%) are also higher - Juniper is the frequent subject of M&A speculation, but its $11.7B market cap poses a challenge. (Sonus and Riverbed) | Comment!
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