Broadband Briefs for 11/07/08
• Vecima buys more of Redline
By Brian Santo
For the second time in less than a week, Vecima Networks upped its stake in WiMAX specialist Redline Communication Group.
On Nov. 3, the company increased its holding in Redline to 11.4 percent (story here). Vecima now owns 2,175,275 or 14.19 percent of the common shares of Redline, based on 15,327,140 common shares reported by Redline as outstanding.
Vecima stated the shares were acquired for investment purposes. The company said it believes its investment in Redline will ultimately pay off as the financial markets stabilize and technology roadmaps become clearer with Redline. Vecima, which is acting alone in its investment acquisition, may elect to increase its investment up to just less than 20% of Redline's common shares. Vecima has no confidential information with respect to Redline.
• Dominguez joins UTStarcom
UTStarcom, which makes IP-based networking products, announced today that Luis Dominguez has joined the company as senior vice president of international sales.
In his new job, Dominguez will oversee all aspects of global sales, marketing and services efforts outside of China.
Prior to UTStarcom, Dominguez was vice president and general manager, worldwide regional sales operations, and president of Americas for Unisys.
• Limelight shares up after 3Q earnings report
Associated Press staff
NEW YORK (AP) – Shares of Limelight Networks Inc., a network services provider, rose Friday after the company posted better-than-expected third-quarter earnings with strong revenue growth.
Shares rose 34 cents, or 16 percent, in morning trading to $2.51. The stock has traded between $1.75 and $11.23 in the past year.
The company reported a widening third-quarter loss of $15.4 million, or 18 cents per share, compared with $3.1 million, or 4 cents, in the same quarter last year.
But excluding one-time charges related to litigation and stock compensation, the company said it lost 1 cent per share, beating average analyst expectations of a 3 cent loss, according to a survey by Thomson Reuters.
Revenue rose about 13 percent to $33.1 million from $29.2 million. Analysts predicted $31.2 million, on average.
Oppenheimer & Co. analyst Srinivas Anantha said in a note to clients, "The good quarter should help further put to rest fears that customers will avoid" Limelight's services because of litigation the company is involved in.
Limelight also estimated revenue for the fourth quarter to come in at $33 million to $34 million, slightly better that Wall Street expectations of $32.9 million.
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