A friend of mine shared this story with me and I thought it was worth passing along. During the space race back in the 1960's, NASA had to address the problem of how astronauts would write in the vacuum of space. At the cost of $1.5 million dollars they developed an "astronaut pen", which went on to enjoy success in the commercial market. Proving that ingenuity can solve almost any problem. The Soviets, faced with the same problem used pencils.
Its a funny story and worth pointing out to our community that applies considerable brain-power to solving problems. Be wary of the complex solution to a given problem, Nature loves simplicity. Always consider the possibility of a good, cheap and simple solution, right?
Apparently the rest of the story validates the pen development. Initially, NASA used pencils just like the Soviets did, but the leads sometimes broke and became a hazard floating in the zero-gravity environment of the capsule. Also, the lead and wood could burn rapidly in the pure oxygen atmosphere.
Paul Fisher realized NASA needed a safer writing instrument and so in 1965 he spent a million dollars of his own money (applause for the free market entrepeneur) developing an all metal pen with sealed pressurized ink cartridge. The ink has a flash point of 200 degrees c, satisfying the need for a writing tool that wouldn't burn in pure oxygen. Fisher sold 400 pens to NASA in 1967 for $2.95 before they went on to great commercial success. By 1968, the Soviets were using them as well.
So keep on innovating
Friday, May 8, 2009
Component Makers Hit Hardest in Q1
A preliminary look at the first quarter financial results for the telecom industry reveals poor but not surprising results, reflecting the impact of the recession. Service provider revenues are down versus the same quarter last year, but only a few percentage points, while capital spending and attendant equipment vendor revenues are down 15–25%. Component makers and contract manufacturers are also reporting revenue declines averaging 20–30% versus the year-ago quarter.
Among equipment vendors, revenues declined 15% on average, with Alcatel-Lucent down 6.9%, NSN down 12.1%, and Cisco down 21.5% (with exchange rate effects factored out for Alcatel-Lucent and NSN). Further down the supply chain, component revenues were down almost 20% among sampled companies, and contract manufacturing revenues were down nearly 28%, due to a ‘bullwhip effect’.
A couple of bright spots are also starting to appear. Wireless backhaul leader Ceragon reported a revenue decline of only 7%.
Among equipment vendors, revenues declined 15% on average, with Alcatel-Lucent down 6.9%, NSN down 12.1%, and Cisco down 21.5% (with exchange rate effects factored out for Alcatel-Lucent and NSN). Further down the supply chain, component revenues were down almost 20% among sampled companies, and contract manufacturing revenues were down nearly 28%, due to a ‘bullwhip effect’.
A couple of bright spots are also starting to appear. Wireless backhaul leader Ceragon reported a revenue decline of only 7%.
Thursday, May 7, 2009
New Tools on the Blog!
You might have noticed that we have added some cool new tools to the blog. In the right column, we now have a link at the top to get all of our entries as audio files. You can listen to them as you do something else or download them to your mp3 player. There is also a feed on the page to subscribe to for updates.
Also in the right column is a Twitter Search feed. You can enter any term and it will provide real time updates for that keyword. Enter IMS2009 to follow everyone for Tweats about the upcoming IMS 2009 MTT-S Symposium. Pass the word around to use the hashtag #IMS2009 so everyone can monitor the action and participate. Just begin each Tweat with #IMS2009 and everyone can track that term.
Also in the right column is a Twitter Search feed. You can enter any term and it will provide real time updates for that keyword. Enter IMS2009 to follow everyone for Tweats about the upcoming IMS 2009 MTT-S Symposium. Pass the word around to use the hashtag #IMS2009 so everyone can monitor the action and participate. Just begin each Tweat with #IMS2009 and everyone can track that term.
Tuesday, May 5, 2009
Hotel Reservations for IMS 2009
The IEEE MTT-S steering committee for the IMS 2009 in Boston has extended the deadline for reserving a hotel room from among their block of rooms. The new date, May 8 is this Friday - just around the corner!!! Hopefully, the extension will help all you last minute planners. If you have been on the fence about attending, I recommend you consider the long term benefits of industry networking and the year-in year-out high quality of attendees that go to this one show.
While the economy has certainly been rough this year, the IMS is our industry's biggest single event and should not be missed. Even if it requires tightening the budget in some other areas. The cost of a few days in Boston is considerably less than a series of road trips to visit the same number of customers. From an editor's perspective, I could easily fill up more than half of my editorial requirements for yearly content at this one show, just by meeting with clients.
Reserving your hotel room through the MTT-S allows them to negotiate room rate reductions in following years and provides additional savings to the society, which gets passed on to attendees and exhibitors by lowering operating costs. And bus service from the hotel to the convention center is provided for those who book through the MTT-S. One final note - think about all those potential contacts socializing down at the hotel bar. Are you sure its worth being out at the Budget Inn in Revere?
While the economy has certainly been rough this year, the IMS is our industry's biggest single event and should not be missed. Even if it requires tightening the budget in some other areas. The cost of a few days in Boston is considerably less than a series of road trips to visit the same number of customers. From an editor's perspective, I could easily fill up more than half of my editorial requirements for yearly content at this one show, just by meeting with clients.
Reserving your hotel room through the MTT-S allows them to negotiate room rate reductions in following years and provides additional savings to the society, which gets passed on to attendees and exhibitors by lowering operating costs. And bus service from the hotel to the convention center is provided for those who book through the MTT-S. One final note - think about all those potential contacts socializing down at the hotel bar. Are you sure its worth being out at the Budget Inn in Revere?
Agilent Introduces Real-time RF Geolocation Technique
Agilent Technologies recently introduced an integrated real-time radio frequency (RF) emitter geolocation technique using a network of RF Sensors. The Geolocation server software estimates position of a non-cooperative intermittent or short-duration RF signal using measurements from the sensor network and calculations with time-difference-of-arrival (TDOA) techniques.
"Traditional direction-finding systems are ideal for obtaining the line of bearing on higher power and narrowband signals. However, modern signals with complex modulations, wider bandwidths and short durations are driving a need for complementary geolocation techniques such as TDOA," said Tom Burrell, vice president and general manager of Agilent's Signal Networks Division. "Tightly synchronized receivers provide the foundation for transmitter geolocation techniques in commercial, radio regulatory, security and defense applications."
The geolocation system can be operated manually by the user or "tipped" automatically from a signal search/monitoring system. Then, three to five sensors at separate locations provide precisely time-stamped spectrum data to the server software. The software's visual displays show two-dimensional signal correlation and propagation characteristics in addition to the estimated position. Raster maps in most standard formats, e.g., jpg, gif, tiff and geotiff, can be imported and combined with the estimated position from the geolocation software.
The Agilent N6854A depends on low-cost receivers for accurate and timely geolocation of emitters. The small low-profile form factor receiver - about the size of a laptop PC - offers many discreet deployment and mounting options including pole-top or wall-mount. Co-locating the sensor with the antenna reduces antenna size and complexity plus helps to minimize signal loss due to coaxial cable attenuation. Announced on April 1, the N6841A RF Sensor monitors signals over a frequency range of 20 MHz to 6 GHz using a 14-bit ADC to accurately digitize signals with a 20 MHz information bandwidth. The network interface allows the sensors to be distributed within a building, throughout a city or across the world.
"Traditional direction-finding systems are ideal for obtaining the line of bearing on higher power and narrowband signals. However, modern signals with complex modulations, wider bandwidths and short durations are driving a need for complementary geolocation techniques such as TDOA," said Tom Burrell, vice president and general manager of Agilent's Signal Networks Division. "Tightly synchronized receivers provide the foundation for transmitter geolocation techniques in commercial, radio regulatory, security and defense applications."
The geolocation system can be operated manually by the user or "tipped" automatically from a signal search/monitoring system. Then, three to five sensors at separate locations provide precisely time-stamped spectrum data to the server software. The software's visual displays show two-dimensional signal correlation and propagation characteristics in addition to the estimated position. Raster maps in most standard formats, e.g., jpg, gif, tiff and geotiff, can be imported and combined with the estimated position from the geolocation software.
The Agilent N6854A depends on low-cost receivers for accurate and timely geolocation of emitters. The small low-profile form factor receiver - about the size of a laptop PC - offers many discreet deployment and mounting options including pole-top or wall-mount. Co-locating the sensor with the antenna reduces antenna size and complexity plus helps to minimize signal loss due to coaxial cable attenuation. Announced on April 1, the N6841A RF Sensor monitors signals over a frequency range of 20 MHz to 6 GHz using a 14-bit ADC to accurately digitize signals with a 20 MHz information bandwidth. The network interface allows the sensors to be distributed within a building, throughout a city or across the world.
Friday, May 1, 2009
Where Have All of the M/A-COM Pieces Landed?
Over the past year, one of the RF and microwave industry icons has been diced into 5 pieces and sold to various companies. If we go back a few years, M/A-COM was purchased by the connector giant AMP back in 1995 as they wanted expand into the growing wireless markets. AMP was then acquired by the even larger Tyco International in 1999 as they were buying companies in many industries. In 2007, Tyco International split up into 3 companies (after the Dennis Koslowski years), one of which was Tyco Electronics (the medical companies formed a new company called Covidien and the security companies stayed with Tyco International). Tyco Electronics contained the former AMP and M/A-COM companies along with many other brands. Shortly after that time, Tyco Electronics decided most of the M/A-COM product portfolio was not part of their future strategy and put the defense and commercial components businesses up for sale.
Cobham Defense came along in 2008 and purchased the commercial and defense components businesses with the intent to re-sell the commercial business as soon as they found a buyer. At about the same time, the automotive products (antennas and radar sensors) were sold to Autoliv. Cobham recently found a buyer as John Ocampo purchased the commercial components business (John Ocampo is the owner of GaAs Labs which is a large investor in Mimix Broadband) which retains its name developed under Cobham as M/A-COM Technology Solutions. In between all of this, Micronetics scooped up the RFID product lines from the commercial business in a separate transaction which should nicely complement their existing product lines.
And then last week, the private radio group (Wireless Systems) was purchased from Tyco Electronics by Harris Corporation. This should bring strength to both groups as Harris has a strong foot hold in the military radio market and M/A-COM Wireless Systems was growing in the public safety market where Motorola is a dominate player. It may have been sparked by the potential loss of the $2B New York State contract or maybe Harris just saw a good opportunity to grow their radio business.
It will be interesting (and challenging) to follow the pieces as they continue forward in these new companies. So now M/A-COM is part of Cobham, Harris, Micronetics, M/A-COM Technology Solutions (John Ocampo) and Autoliv. What do you think of their future prospects?
Cobham Defense came along in 2008 and purchased the commercial and defense components businesses with the intent to re-sell the commercial business as soon as they found a buyer. At about the same time, the automotive products (antennas and radar sensors) were sold to Autoliv. Cobham recently found a buyer as John Ocampo purchased the commercial components business (John Ocampo is the owner of GaAs Labs which is a large investor in Mimix Broadband) which retains its name developed under Cobham as M/A-COM Technology Solutions. In between all of this, Micronetics scooped up the RFID product lines from the commercial business in a separate transaction which should nicely complement their existing product lines.
And then last week, the private radio group (Wireless Systems) was purchased from Tyco Electronics by Harris Corporation. This should bring strength to both groups as Harris has a strong foot hold in the military radio market and M/A-COM Wireless Systems was growing in the public safety market where Motorola is a dominate player. It may have been sparked by the potential loss of the $2B New York State contract or maybe Harris just saw a good opportunity to grow their radio business.
It will be interesting (and challenging) to follow the pieces as they continue forward in these new companies. So now M/A-COM is part of Cobham, Harris, Micronetics, M/A-COM Technology Solutions (John Ocampo) and Autoliv. What do you think of their future prospects?
Thursday, April 30, 2009
Microwaves Could Enable Solar Energy Harvesting in Space
Pacific Gas & Electric (PG&E) has announced they're expanding their solar interest far beyond California and into outer space. The San Francisco based utility plans on purchasing 200 MW of electricity from Solaren Corp., a start-up that is trying to produce solar power in space. Solaren plans to deploy solar panels in space that would collect the sun's energy and transfer it via microwaves back to a collecting station on Earth. Then the energy would be converted to electricity and feed into the grid. The microwave frequency would be one that is least absorbed by the Earth's atmosphere. People have expressed concern that the beam might damage anything that gets in its path but they claim it would be 1/6 the intensity of noon sunlight. I am not sure how they are comparing light energy to microwave energy. The plan would have the system operating in 2016.
Solaren says that unlike ground-based solar arrays, space satellites could generate power 24 hours a day, unaffected by cloudy weather or Earth's day-night cycle. The capacity factor for a ground-based solar is typically less than 25 percent. In contrast, the capacity factor for a power-generating satellite is expected to be 97 percent.
The agreement calls for 800 gigawatt-hours of electricity to be provided during the first year of operation, and 1,700 gigawatt-hours for subsequent years. The larger figure is roughly equal to the annual consumption of 250,000 average homes.
Very interesting stuff and this year there is really a big emphasis on the "Greening of Wireless" to reduce our dependence on fossil based fuels. Microwave Journal is hosting a webinar and featuring a technical article by Mesuro and Tektronix to introduce a new open loop active load pull technique for the design of complex, highly efficient power amplifiers, necessary for reducing the power consumption of tomorrow’s mobile infrastructure. The method utilizing microwave sampling scope technology to simultaneously capture waveform data ranging from DC to several tens of GHz is demonstrated.
Wednesday, April 29, 2009
Touchy Cellphone Users Spur Sales
According to Wirefly, sales of touchscreen devices have grown 56% from the fourth quarter of 2008 to the first quarter of 2009 and currently account for 38% of its cell phone sales. Two factors are driving the sharp increase in popularity of touchscreen phones: The increased choice of touchscreen devices from virtually every wireless manufacturer and its affordability for even the most budget-conscious consumer.
“The mobile industry has embraced the touchscreen,” said Andy Zeinfeld, CEO of Simplexity, parent company of Wirefly. “Consumers are in love with the fluid interface. Many find the touchscreen cell phone easier to learn and easier to navigate than its push-button counterpart. With a simple flick, tap or swipe of a finger, users can quickly glide, zoom and flip through web pages, documents, emails and photo albums.”
“The mobile industry has embraced the touchscreen,” said Andy Zeinfeld, CEO of Simplexity, parent company of Wirefly. “Consumers are in love with the fluid interface. Many find the touchscreen cell phone easier to learn and easier to navigate than its push-button counterpart. With a simple flick, tap or swipe of a finger, users can quickly glide, zoom and flip through web pages, documents, emails and photo albums.”
Grim Week for Agilent Employees
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This past Wednesday, Agilent Technologies laid off 300 employees at its Santa Rosa division or more than 20 percent of its work force. Agilent employees had been awaiting the grim news for the past three weeks. In March, the Santa Clara-based company announced plans to eliminate 14 percent of its global work force. The layoffs at the high-tech test & measurement equipment manufacturer occurred over the full range of Agilent jobs in Santa Rosa, including managers, engineers, marketing, human resources, finance, manufacturing and support, said Ron Nersesian, who heads Agilent’s Santa Rosa-based Electronic Measurement Group.
Wednesday’s layoffs were the largest at Agilent in Santa Rosa since 2005, when more than 300 employees were let go. Over the past eight years, the company has eliminated 5 out of 6 jobs at its Sonoma County operations as it slashed costs and moved manufacturing jobs to cheaper facilities overseas. The layoffs will leave Agilent with 1,050 employees in Sonoma County, down from a peak of 6,000 regular and temporary workers in 2001.
Unlike past layoffs that involved the shifting of manufacturing jobs overseas, these recent job cuts were not for the sake of offshoring, Nersesian said. The company’s Asian manufacturing facilities also face “significant” cut-backs because of falling orders for Agilent’s products, he said.
Agilent and other technology companies are losing business as consumers cut back on spending for the latest electronic devices. This year’s revenue for the test and measurement business will be down 30 percent from 2008, the company said in March.
Overall, the company is cutting 2,700 jobs worldwide under the restructuring plan implemented Wednesday. The staffing cuts and other cost-cutting measures are expected to save the company $300 million over the next four quarters.
Monday, April 27, 2009
Handset Market Not Hit As Hard As Expected
According to ABI Research, consumers did not cut back too much in purchasing handsets during the first quarter of 2009 which is good news. Handset vendors shipped 258 million handsets by the end of the quarter which represents an 11% year-over-year decline. This significantly exceeded the previous forecast of 253.5 million.
ABI has introduced a note of mild optimism in its handset forecasts for YE-2009, revising them from -8.4% to -8%. Samsung and LG demonstrated healthy gains to take their market shares to 17.8% and 8.8%, respectively. Another star performer was RIM which raised its share to 3.0% due largely to the success of its Blackberry Bold. It is a little curious that Apple’s market share is just 1.5% given the success of its AppStore. As popular as the iPhone3G has been, increased competition in the touchscreen segment and a lack of product differentiation may be dampening demand. ABI Research expects that by 2H-2009 the iPhone3G will have one or more siblings. That will allow Apple to accelerate growth.
Nokia was beaten out by SonyEricsson for showing the largest contractions (their shares now stand at 36.2% and 5.6%). Nokia will breathe a sigh of relief once its latest smartphone, the N97, enters the market. Nokia has had a fair amount of success with the E71 but needs to beef up its touchscreen product lines. While Sony-Ericsson has the Experia smartphone line-up, the firm’s exposure to the feature phone segment was squeezed more than other handset sectors. While feature phones serve many needs in the market, operators have been especially keen to snap up smartphone stock and were cooler on the Ultra-Low Cost and feature phone orders.
ABI says that despite the positive signs, the industry should be cautious. The IMF has issued another sharp downgrade to its global outlook. Unemployment figures are also likely to continue creeping up. Buyers in the developed world are still concerned about debt and job security. Developing economies are expected to take a hit on the credit side which could have knock-on consequences on credit lines for purchases and stock levels.
ABI has introduced a note of mild optimism in its handset forecasts for YE-2009, revising them from -8.4% to -8%. Samsung and LG demonstrated healthy gains to take their market shares to 17.8% and 8.8%, respectively. Another star performer was RIM which raised its share to 3.0% due largely to the success of its Blackberry Bold. It is a little curious that Apple’s market share is just 1.5% given the success of its AppStore. As popular as the iPhone3G has been, increased competition in the touchscreen segment and a lack of product differentiation may be dampening demand. ABI Research expects that by 2H-2009 the iPhone3G will have one or more siblings. That will allow Apple to accelerate growth.
Nokia was beaten out by SonyEricsson for showing the largest contractions (their shares now stand at 36.2% and 5.6%). Nokia will breathe a sigh of relief once its latest smartphone, the N97, enters the market. Nokia has had a fair amount of success with the E71 but needs to beef up its touchscreen product lines. While Sony-Ericsson has the Experia smartphone line-up, the firm’s exposure to the feature phone segment was squeezed more than other handset sectors. While feature phones serve many needs in the market, operators have been especially keen to snap up smartphone stock and were cooler on the Ultra-Low Cost and feature phone orders.
ABI says that despite the positive signs, the industry should be cautious. The IMF has issued another sharp downgrade to its global outlook. Unemployment figures are also likely to continue creeping up. Buyers in the developed world are still concerned about debt and job security. Developing economies are expected to take a hit on the credit side which could have knock-on consequences on credit lines for purchases and stock levels.
Friday, April 24, 2009
Skyworks Revenue Down for Q2
RF/microwave integrated device manufacturer, Skyworks Solutions, Inc. (NASDAQ: SWKS) announced their second fiscal quarter 2009 results on Thursday. Revenue for the quarter was $173.0 million, a 14 percent decrease from $201.7 million in the year-ago period and versus guidance of $168.0 million.
Non-GAAP operating income was $21.2 million in the second fiscal quarter with diluted earnings per share of $0.12, $0.02 better than consensus estimates. On a GAAP basis, operating loss for the second fiscal quarter was $3.7 million and diluted loss per share was $0.03, including $19.4 million of previously disclosed charges relating to the Company’s operating expense reduction initiatives.
“Despite the challenging economic backdrop, Skyworks delivered solid financial results in the second fiscal quarter of 2009 driven by our diversification, scale advantages, fab-lite strategy and improved cost structure,” said David J. Aldrich, president and chief executive officer of Skyworks. “Offsetting general market weakness, our performance was highlighted by strength in energy management and smart grid technologies, China 3G base stations, smart phones and push-to-talk applications. At a higher level, we believe our results demonstrate that Skyworks is gaining share in the broader analog semiconductor market and is creating a highly differentiated business model.”
Business Highlights
* Maintained non-GAAP gross margin of 40 percent (38 percent on a GAAP basis)
* Reduced operating expenses by more than $25 million on an annualized basis
* Partnered with Itron, a leading energy technology provider, to meet increasing demand for smart meter technology
* Captured key design wins at Huawei and ZTE for 3G and 4G base station solutions
* Unveiled a suite of low noise amplifiers targeting ultra-high performance infrastructure, GPS and satellite radio applications
* Supported an increasingly popular e-book reading platform developed by one of the world’s largest online retailers
* Expanded Qualcomm baseband partnership leveraging higher value front-end modules and encompassing a growing number of 2G, 3G and HSDPA reference designs
* Named Supplier of the Year for the second consecutive time by LG Electronics
Third Fiscal Quarter 2009 Outlook
“Although we remain cautious on the macro-economy, Skyworks intends to resume top and bottom line growth in the current quarter through share gains and participation in new markets,” said Donald W. Palette, vice president and chief financial officer of Skyworks. “Specifically, we expect June quarterly revenue to be up 5 percent sequentially with expanding margins driving non-GAAP diluted earnings per share of $0.14 - - - a 15 percent sequential improvement in profitability.”
Non-GAAP operating income was $21.2 million in the second fiscal quarter with diluted earnings per share of $0.12, $0.02 better than consensus estimates. On a GAAP basis, operating loss for the second fiscal quarter was $3.7 million and diluted loss per share was $0.03, including $19.4 million of previously disclosed charges relating to the Company’s operating expense reduction initiatives.
“Despite the challenging economic backdrop, Skyworks delivered solid financial results in the second fiscal quarter of 2009 driven by our diversification, scale advantages, fab-lite strategy and improved cost structure,” said David J. Aldrich, president and chief executive officer of Skyworks. “Offsetting general market weakness, our performance was highlighted by strength in energy management and smart grid technologies, China 3G base stations, smart phones and push-to-talk applications. At a higher level, we believe our results demonstrate that Skyworks is gaining share in the broader analog semiconductor market and is creating a highly differentiated business model.”
Business Highlights
* Maintained non-GAAP gross margin of 40 percent (38 percent on a GAAP basis)
* Reduced operating expenses by more than $25 million on an annualized basis
* Partnered with Itron, a leading energy technology provider, to meet increasing demand for smart meter technology
* Captured key design wins at Huawei and ZTE for 3G and 4G base station solutions
* Unveiled a suite of low noise amplifiers targeting ultra-high performance infrastructure, GPS and satellite radio applications
* Supported an increasingly popular e-book reading platform developed by one of the world’s largest online retailers
* Expanded Qualcomm baseband partnership leveraging higher value front-end modules and encompassing a growing number of 2G, 3G and HSDPA reference designs
* Named Supplier of the Year for the second consecutive time by LG Electronics
Third Fiscal Quarter 2009 Outlook
“Although we remain cautious on the macro-economy, Skyworks intends to resume top and bottom line growth in the current quarter through share gains and participation in new markets,” said Donald W. Palette, vice president and chief financial officer of Skyworks. “Specifically, we expect June quarterly revenue to be up 5 percent sequentially with expanding margins driving non-GAAP diluted earnings per share of $0.14 - - - a 15 percent sequential improvement in profitability.”
Thursday, April 23, 2009
TriQuint Reports Q1 2009 earnings
As expected, Q1 2009 revenue was seasonally down, compared to Q4, in a challenging economic environment of inventory correction and reduced short term demand. Still, total revenue was up 7% as compared to Q1 2008. These results were led by Handset growth of 24% and Defense / Aerospace growth of 23%. The reduction of both channel and TriQuint inventory drove Oregon fab’s utilization to 35% and pushed gross margin down, resulting in a Non-GAAP net loss of ($0.07) per share on revenue of $118.9 million, both on the favorable end of our expectations. Fortunately, an inflection point of increasing demand occurred late in the quarter as Handset inventory normalized.
Highlights from the quarter included:
* Revenue for the first quarter was $118.9 million, up 7% from Q1’08
* Inventory was reduced $19.8 million from the fourth quarter of 2008
* Book to bill ratio for the quarter was 1.14
* Honored by Intel Corporation with its 2008 Preferred Quality Supplier award
* Achieved cumulative shipments of more than a half billion total RF modules
* Introduced the market’s first SMT device for 40Gb/s optical communications
* Unveiled TRIUMF™, 3G/4G converged mobile solution
* First design win for TriPower™ – Next generation infrastructure RF power solution
* Fulfilled initial production orders of GaAs and BAW devices for multi-nation F-35 Joint Strike Fighter
Commenting on the results for the quarter ended March 31, 2009, Ralph Quinsey, President and Chief Executive Officer, stated “The global economic downturn prompted lower inventory at our customers and very low factory utilization in Q1. We are now seeing signs of inventory normalization in some of our markets which should translate into stronger demand in the coming months."
Quinsey also commented that, "Market strength in smart-phones, the acquisition of WJ Communications and positive momentum in major military programs contributed to our year over year growth.”
Highlights from the quarter included:
* Revenue for the first quarter was $118.9 million, up 7% from Q1’08
* Inventory was reduced $19.8 million from the fourth quarter of 2008
* Book to bill ratio for the quarter was 1.14
* Honored by Intel Corporation with its 2008 Preferred Quality Supplier award
* Achieved cumulative shipments of more than a half billion total RF modules
* Introduced the market’s first SMT device for 40Gb/s optical communications
* Unveiled TRIUMF™, 3G/4G converged mobile solution
* First design win for TriPower™ – Next generation infrastructure RF power solution
* Fulfilled initial production orders of GaAs and BAW devices for multi-nation F-35 Joint Strike Fighter
Commenting on the results for the quarter ended March 31, 2009, Ralph Quinsey, President and Chief Executive Officer, stated “The global economic downturn prompted lower inventory at our customers and very low factory utilization in Q1. We are now seeing signs of inventory normalization in some of our markets which should translate into stronger demand in the coming months."
Quinsey also commented that, "Market strength in smart-phones, the acquisition of WJ Communications and positive momentum in major military programs contributed to our year over year growth.”
Wednesday, April 22, 2009
AWR Reports Good Results
On Monday (April 20th) high-frequency EDA supplier AWR® announced record annual revenues for its 2009 fiscal year that ended March 31, as well as for the year’s fourth quarter, and record backlog as it enters the 2010 fiscal year. This achievement marks the twelfth consecutive year of revenue growth for the company and was broad-based, with strong bookings throughout Europe, North America and the Asia Pacific region from both new and existing customers. It is an impressive streak for the software innovator - especially in light of the worldwide recession.
AWR executives attribute the performance to several factors. The company acknowledged that it had received two of its largest orders in company history, both from top-tier manufacturers of third-generation (3G) wireless transceiver modules for smart phones. The company also claimed to have experienced strong growth within existing aerospace and defense accounts as well as from new customers that switched to AWR products from competing tools.
I’ve always believed that tough times calls for digging in and doubling your efforts to do what has made one successful in the past. This effort needs to also be balanced with flexibility in order to change to changing times. Based on this latest fiscal report, AWR seems to being doing both of these quite well. How is your company weathering the storm? Is the performance of your company better than expected? Are we turning a corner in this recession? Tell us about your success.
AWR executives attribute the performance to several factors. The company acknowledged that it had received two of its largest orders in company history, both from top-tier manufacturers of third-generation (3G) wireless transceiver modules for smart phones. The company also claimed to have experienced strong growth within existing aerospace and defense accounts as well as from new customers that switched to AWR products from competing tools.
I’ve always believed that tough times calls for digging in and doubling your efforts to do what has made one successful in the past. This effort needs to also be balanced with flexibility in order to change to changing times. Based on this latest fiscal report, AWR seems to being doing both of these quite well. How is your company weathering the storm? Is the performance of your company better than expected? Are we turning a corner in this recession? Tell us about your success.
Monday, April 20, 2009
Oracle to Acquire Sun Microsystems
Back in the mid-80s, do you remember sign-up sheets for workstations, which were extremely expensive and in short supply. Design software such as MDS (HP), Libra (EEsof) and Harmonica (Compact Software) required the high performance computing only available on these machines and EM simulation software such as HFSS was not yet widely available. Many of us (junior) engineers had to work later in the evening waiting for a workstation to became available. Do you remember the Unix wars between the proponents of BSD from Univerity of California, Berkeley and System V from AT&T? BSD Unix vendor Sun Microsytems and AT&T would start working together on a unified system in 1987. Eventually a workstation for every design engineer would become a reality. Workstations and PCs have certainly come a long way since then, and today's simulators often utilize compute farms to address ever-larger problems, broad parameteric sweeps and optimization, yet hearing that Oracle Corp. plans to acquire Sun Microsystems Inc. for $7.4billion, brought back memories of those days many years ago.
In the deal, Oracle trumped IBM by picking up what might prove to be a software treasure trove that includes the popular MySQL open-source database as well as Java.
Oracle said it will pay $9.50 per share in cash for Sun, or $5.6 billion net of Sun's cash and debt. The move follows Oracle's purchases of a raft of companies in the past few years, including Siebel Systems, PeopleSoft and BEA Systems.
Sun shares rose by $2.41 to $9.10 in trading about an hour after the market opened, while Oracle shares declined by $1.03 to $18.03. Shares of the buying company in big mergers and acquisitions often sink at first as investors debate the relative merits of laying out large amounts of cash for the acquisition.
On a conference call Monday, Oracle CEO Larry Ellison said Java and Solaris were the two main reasons Oracle purchased Sun, a move that is in line with Oracle's acquisition strategy to buy companies with "market-leading products."
Calling Java "the single most important software asset we have ever acquired," he said Oracle's Java-based middleware business, bolstered first by the BEA acquisition and now by the purchase of Sun, is on track to become as large as Oracle's flagship database business. Oracle's Fusion middleware is based on Java.
Oracle also considers Solaris "by far the best Unix technology available in the market," which is why more Oracle databases run on that OS than any other, Ellison said. He said Oracle's enterprise customers running both products will be able to experience new benefits by technical integration of the products.
Anyone else care to share some old Sun Solaris SPARC memories?
In the deal, Oracle trumped IBM by picking up what might prove to be a software treasure trove that includes the popular MySQL open-source database as well as Java.
Oracle said it will pay $9.50 per share in cash for Sun, or $5.6 billion net of Sun's cash and debt. The move follows Oracle's purchases of a raft of companies in the past few years, including Siebel Systems, PeopleSoft and BEA Systems.
Sun shares rose by $2.41 to $9.10 in trading about an hour after the market opened, while Oracle shares declined by $1.03 to $18.03. Shares of the buying company in big mergers and acquisitions often sink at first as investors debate the relative merits of laying out large amounts of cash for the acquisition.
On a conference call Monday, Oracle CEO Larry Ellison said Java and Solaris were the two main reasons Oracle purchased Sun, a move that is in line with Oracle's acquisition strategy to buy companies with "market-leading products."
Calling Java "the single most important software asset we have ever acquired," he said Oracle's Java-based middleware business, bolstered first by the BEA acquisition and now by the purchase of Sun, is on track to become as large as Oracle's flagship database business. Oracle's Fusion middleware is based on Java.
Oracle also considers Solaris "by far the best Unix technology available in the market," which is why more Oracle databases run on that OS than any other, Ellison said. He said Oracle's enterprise customers running both products will be able to experience new benefits by technical integration of the products.
Anyone else care to share some old Sun Solaris SPARC memories?
Friday, April 17, 2009
WCAI Wireless Policy Summit is Approaching
It was announced this week that Sean Maloney, executive vice president and chief sales and marketing officer at Intel Corporation will give the opening keynote address at the WCAI’s Wireless Policy Summit on May 5 in Washington, DC. The Summit, being held at the Grand Hyatt Hotel, will gather key officials from government and industry in an open forum for the exchange of ideas between attendees. This event is an ideal opportunity to meet face-to-face with top decision-makers who are shaping the future of the industry in 2009 and beyond. As the new Administration is acting on its commitment to bring broadband access to all Americans, the Summit will examine the role of wireless in the broadband stimulus package, universal service, open access, net neutrality, and more. WCAI web site
In light of the current economy, the summit seems well timed. On April 8th, the FCC adopted a notice of inquiry seeking public comment on the national broadband plan that the Commission is required to prepare under the American Recovery and Reinvestment Act of 2009 (ARRA). Fred Campbell of the WCAI commmented on his blog stating - "Wireless broadband platforms should play a leading role in the Commission’s plan to ensure that every American has access to broadband capability. Wireless technology is the most cost-effective way to provide affordable broadband both to sparsely populated rural areas and urban centers. Moreover, as the only broadband platform that is capable of providing access everywhere, all the time, wireless broadband offers mobility – a connection to every person whether at home or on the go. These capabilities make wireless broadband essential to achieving the FCC’s goal of universal broadband connectivity.”
Microwave Journal and its sister publication Telecommunications will be keeping a close eye on the lobbying efforts to develop wireless broadband platforms to address the ARRA of 2009. Stay tuned as we will be working with all parties with a stake in this area. Meanwhile - are you heading to this forum? We'd love to hear from you.
In light of the current economy, the summit seems well timed. On April 8th, the FCC adopted a notice of inquiry seeking public comment on the national broadband plan that the Commission is required to prepare under the American Recovery and Reinvestment Act of 2009 (ARRA). Fred Campbell of the WCAI commmented on his blog stating - "Wireless broadband platforms should play a leading role in the Commission’s plan to ensure that every American has access to broadband capability. Wireless technology is the most cost-effective way to provide affordable broadband both to sparsely populated rural areas and urban centers. Moreover, as the only broadband platform that is capable of providing access everywhere, all the time, wireless broadband offers mobility – a connection to every person whether at home or on the go. These capabilities make wireless broadband essential to achieving the FCC’s goal of universal broadband connectivity.”
Microwave Journal and its sister publication Telecommunications will be keeping a close eye on the lobbying efforts to develop wireless broadband platforms to address the ARRA of 2009. Stay tuned as we will be working with all parties with a stake in this area. Meanwhile - are you heading to this forum? We'd love to hear from you.
MWJ April Issue is Out - Let the Battle Begin
Our April issue themed "Amplifiers and Oscillators" just came out with the lead story about the advantages and disadvantages of Si versus GaAs based semiconductor technologies for power amplifier applications (the discussion is contained to lower power levels, <1 W where they both have good performance). It discusses how Si has made many strides in this arena and could be the preferred technology for many applications.
There is no doubt that GaAs is usually better suited for higher power applications but in the high power realm, LDMOS (at lower frequencies) and GaN have made significant inroads into the market. So it seems GaAs is always getting squeezed in the market with competition on both ends. We will address this high power market in our June issue lead story as LDMOS and GaN face off. Please read the article and let us know your feedback - I am sure the GaAs proponents will have something to say!
There is no doubt that GaAs is usually better suited for higher power applications but in the high power realm, LDMOS (at lower frequencies) and GaN have made significant inroads into the market. So it seems GaAs is always getting squeezed in the market with competition on both ends. We will address this high power market in our June issue lead story as LDMOS and GaN face off. Please read the article and let us know your feedback - I am sure the GaAs proponents will have something to say!
GaAs Downturn Predicted to Not Be as Severe as 2001
Strategy Analytics issued a report “GaAs Industry Downturns 2001 vs. 2009," where the Strategy Analytics GaAs and Compound Technologies service reiterated previous projections of a 5% - 6% drop in GaAs industry revenues for 2009, and explains why the current downturn will not be as extreme for the GaAs industry as in 2001.
As SA said previously, the GaAs industry hit a wall in the last quarter of 2008. The effects of a global economic slowdown finally caught up with the handset market—and other end markets—in which GaAs technology is used. However, Strategy Analytics believes that the expanding demand for bandwidth coupled with better managed inventory corrections will save the industry from seeing the precipitous 25% drop suffered in 2001.
As SA said previously, the GaAs industry hit a wall in the last quarter of 2008. The effects of a global economic slowdown finally caught up with the handset market—and other end markets—in which GaAs technology is used. However, Strategy Analytics believes that the expanding demand for bandwidth coupled with better managed inventory corrections will save the industry from seeing the precipitous 25% drop suffered in 2001.
Friday, April 10, 2009
Broadband Stimulus Funds
One hot topic at CTIA and certainly in the broadband market is the pending stimulus money that will become available from the federal government by Sept 2010. The amount to be allocated to broadband projects is $7.2 billion which is a large sum but after it is broken down in projects, it might not look so large. There has to be at least one grant per state (plus DC and some territories) and 75% must go to rural projects so that is where the emphasis will be for providers. They are encouraging people to team up to take a more holistic view of projects but there will certainly be barriers to doing this. There are also incentives for providing services to unserved and underserved areas.
The legislation is still being worked and public inputs are still being taken but it could be very good for the wireless market providing the funds make it into the hands of the manufacturers. Does anyone has any insights or additional information about the stimulus funding?
The legislation is still being worked and public inputs are still being taken but it could be very good for the wireless market providing the funds make it into the hands of the manufacturers. Does anyone has any insights or additional information about the stimulus funding?
Friday, April 3, 2009
CTIA Keynote Close Out
Steve Largent kicked off the final keynote with some highlights of the show such as Blackberry launching their apps store, the merging of wireless and medical applications and a few new product launches from the big carriers. He showed a video of how the industry is recycling and leading in "green" efforts. Largent then introduced the final speaker, the honorable Al Gore.Gore reviewed the history of information distribution and how it has affected the balance of power from the few to the many. He stated there were only 50 web sites online about the time Clinton and he took office compared to today where there are billions. He drove the concept that we have a climate change, security and economic crisis. The common thread in these is our reliance on carbon based energy so we must act quickly to move away from that situation. He stated that wireless is a key tool to solving these problems and challenged everyone to contribute and lead the effort. He said we should have more than a financial incentive as it will improve mankind!
Many people at the show enjoyed the previous day's keynote on how advanced wireless medical applications were being developed. They showed how you could monitor your vital signs on your smart phone and send them to your doctor.
The other subject that was discussed on the floor was the government incentives for the expansion of broadband services around the country. It seems like the funding is still not completely defined but everyone is looking forward to them being released. However, if it is like most government programs, it could be some time before we see any release of those funds.
Did you see anything interesting at the show or have any comments?
Having Some Fun at CTIA

The PowerWave booth is always huge stretching across the middle of the main exhibition hall. This year they have a formula one race car simulator that is very realistic. You provide them with a little information and then get your ride. I have not come across any other interactive displays yet other than presentations and music.

After a long day at the show, we decided to stay in the Mirage and have a "little" sandwich at Carnegie's. Then came the turkey club that was about a foot high and the pastrami that has a full 2 pounds of meat. We did our best to finish them but we were not very successful. Our publisher, Carl, always poses for the food pictures.
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