Broadband Briefs for 06/04/09
• Comcast ups HD lineup in parts of N.J., Pa., Del.
By Traci Patterson
This week, Speed HD, FX HD and Fox News Channel HD launched on Comcast’s digital cable lineup in various systems in New Jersey, Philadelphia and Delaware.
In addition, on or about June 12, Comcast will launch Ion Television HD and WFMZ-TV HD in select systems in New Jersey, including Comcast of Union, Meadowlands and Plainfield; Comcast of Burlington, Gloucester, Garden State and Maple Shade; Comcast of Central New Jersey; and others.
Comcast offers its subscribers more than 1,000 high-definition movies and TV shows each month.
• Comcast reaches deal with NBA TV
By Deborah Yao, AP Business Writer
PHILADELPHIA (AP) – Comcast Corp. has reached a new seven-year agreement that will add the NBA TV channel to the cable TV operator's most popular digital tier of service before the start of the next pro basketball season.
Comcast struck the deal with NBA Digital that would give NBA TV exposure to 11 million "Digital Classic" viewers, compared with the 2 million it had as part of the sports tier, according to a person with knowledge of the deal. NBA Digital also agreed to lower the per-subscriber rate it charges the cable operator, a key factor in the agreement.
NBA TV had been airing only on Comcast's premium sports package, which costs $5 to $8 per month. NBA TV will now reach 30 million households nationwide. Comcast has reached similar deals with the National Hockey League for its NHL Network and the National Football League's NFL Network.
• Capex pullback affects Ciena’s Q2
By Brian Santo
Ciena reported lower revenue for its fiscal second quarter of 2009 on both a sequential and year-over-year basis. Between the lower revenue and a large write-off of goodwill – a common measure among U.S. companies in the past two quarters – Ciena swung to a loss of $503 million. The company attributed the loss to its customers responding to the recession by pulling back on capital expenditures.
“Our fiscal second quarter was particularly challenging, reflecting the difficult macro and industry environment and continued delays in customer spending,” said Gary Smith, Ciena’s CEO and president. “While recent service providers’ public commentary about expected annual capital expenditures has given the industry reason to be more optimistic about the second half of the year, our customers continue to spend cautiously, and as a result, our visibility remains limited. However, based on our direct conversations with customers and supported by trends we are seeing currently in the business, including recently improved order flow, we expect to deliver sequential revenue growth in our fiscal third quarter.”
Ciena’s Q2 revenue was $144.2 million, compared with fiscal first quarter 2009 revenue of $167.4 million, and $242.2 million in the same period a year ago. The company took a non-cash charge of $455.7 million for impairment of goodwill, which represents the total book value of the company’s goodwill on its balance sheet.
• Vehling joins Silicon Image
By Traci Patterson
Silicon Image has appointed Tim Vehling as vice president of worldwide marketing. Vehling will be responsible for the company’s product marketing, corporate marketing and technical marketing operations worldwide.
“I am very pleased to have Tim join our executive team and look forward to working with him to drive our advanced digital connectivity strategy, initiatives and solutions to emerging and established markets,” said Steve Tirado, president and CEO at Silicon Image.
Vehling joins Silicon Image from Micronas, where he held the position of vice president of marketing and applications engineering. Prior to that, Vehling was vice president of consumer marketing at LSI. Previous appointments include product and technology marketing positions with C-Cube Microsystems, ATI Technologies, Chromatic Research and VLSI.
• Broadcom urges Emulex shareholder meeting on bid
By The Associated Press
IRVINE, Calif. (AP) – Broadcom Corp. again urged Emulex Corp. shareholders to approve a meeting to discuss Broadcom's offer to take over the company. In a statement Wednesday, Broadcom CEO Scott A. McGregor said the chip company's proposal "would give Emulex stockholders the ability to be heard in the most important matters affecting their investment."
For its part, Costa Mesa, Calif.-based Emulex, which makes network equipment, has asked a Santa Ana, Calif., Superior Court to block Broadcom's hostile bid. Broadcom is offering stockholders $9.25 per share, putting the total value of the proposed acquisition at $764 million.
In his statement, McGregor criticized Emulex for engaging in "costly, mudslinging litigation that is wholly irrelevant to our offer (and) entirely without merit."