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When you said HUGE that reminded me That I needed to take a leak...
Zhone Shows Break-Away Lead in Multi-Service Access Platform Shipments Throughout the Americas
Tuesday August 21, 8:00 am ET
Newest Data from Infonetics Reseach Shows Zhone's North American DSL Port Shipments Lead Second Major Supplier by over 100 Percent
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ: ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines, today cited shipment results from the esteemed industry analysis firm, Infonetics Research. The newest Infonetics data shows that Zhone took a break-away lead in second-quarter port shipments in the fast-growth Multi-Service Access Platform (MSAP) category in both North America and Central and Latin America (CALA). Results show Zhone leading in DSL port shipments by more than 100 percent over the number two major suppliers in both North America and CALA. Zhone also led in DSO port shipments in the MSAP category throughout the CALA region.
"Carriers are actively looking for ways to offer new services over their existing last-mile assets while at the same time simplifying provisioning and management," said Jeff Heynen directing analyst of broadband and IPTV for Infonetics Research. "As triple play becomes the baseline service suite, the MSAP product category is widely acknowledged as the platform of choice over single-purpose systems."
"We're seeing tremendous operator interest in the service flexibility and cost advantages of our MALC platform," said Steven Glapa, VP of marketing for Zhone. "Zhone will continue to extend MSAP innovation into new modes of access--for example, our recent introduction of standards-based GPON--to leverage the MALC's powerful operational advantage and create greater value for our customers."
In use by hundreds of operators worldwide in both established and emerging markets, Zhone's MALC MSAP enables providers to quickly deploy a comprehensive suite of communications services over copper or fiber via one powerful converged platform. In addition to high-speed data and POTs voice, Zhone's MALC enables simplified provisioning of premium Voice over IP, IPTV, and fast-growth Ethernet in the First Mile (EFM) services.
About Zhone Technologies -- Access for a Converging World
Zhone Technologies, Inc. (NASDAQ: ZHNE - News) is a provider of advanced communications equipment to more than 600 operators worldwide. The company's broad line of access and transport networking solutions enables the full range of multi-play services, including residential and business broadband, VoIP, IPTV, and Ethernet. Zhone's converged access platform improves network agility and reduces costs, allowing operators to rapidly deploy premium services on their existing copper and fiber infrastructure while providing a seamless migration path to an efficient, all-IP network. www.zhone.com
Contact:
Zhone Technologies, Inc.
Susie Choy, +1 510-777-7013
Investor Relations
Fax: +1 510-777-7001
investor-relations@zhone.com
or
Tracy Oliver, +1 510-665-7984
Public Relations: The Americas
Mobile: +1 925-640-0989
tracy@skycastlemedia.com
or
Deborah Stevens, 01276 471240
Public Relations: EMEA
Mobile: 07962 066684
debbie@themessagemachine.com
Source: Zhone Technologies, Inc.
Zhone Technologies Selected by On Telecoms Greece for State-of-the-Art Optical Network
Tuesday July 31, 8:00 am ET
Zhone WDM Optical Transport Equipment Chosen to Extend Fiber Capacity and Increase Reliability for Pure Packet Network
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines, today announced that On Telecoms Greece has selected Zhone's WDM optical transport gear to extend the capacity and reliability of its state-of-the-art IP network. On Telecoms Greece--the second largest carrier in the region--is one of the first operators to deploy a pure-packet, all-fiber network. This approach greatly increases network efficiencies, enabling On Telecoms to offer highly competitive, bundled triple-play while eliminating bottlenecks to its serving area, a region that extends to 80 percent of the businesses and residences in the Attica province.
"We've designed our network to ensure maximum capacity and reliability," said Sandro Falleni, general manager of technology for On Telecoms Greece. "Zhone provides the most robust transport suite in its class, accompanied by the scalability, feature breadth and the high value we require."
On Telecoms provides telephony, ultra high speed Internet, and a range of new video services to businesses and residential customers as well as other telecom carriers via the European Union's Unbundled Local Loop (ULL) initiative. On Telecoms' service vision is to lead the digital revolution by creating an easier, more exciting Internet experience for its customers.
"By selecting Zhone's GigaMux optical transport suite, On Telecoms ensures secure, scaleable C/DWDM transport capacity with simplified management requirements," said Mike Scheck, Zhone's vice president of international sales. "We're proud to be a part of the On Telecoms network. Their business is a superb model of the pure-IP network vision, offering some of the most advanced digital services available today."
About On Telecoms Greece
On Telecoms is a new Generation Telecommunication company, which started its commercial operation last January. It is an owner of the General Telecommunication License and is developing its own fiber network in the greater Attica area in the initial phase. On Telecoms is fully owned by ON Network Holdings N.V., a holding company based in Holland. The main shareholders of the company are the ARGO Capital Partners Fund Ltd and its management team. www.ontelecoms.com
About Zhone Technologies -- Access for a Converging World
Zhone Technologies, Inc. (NASDAQ:ZHNE - News) is a provider of advanced communications equipment to more than 600 operators worldwide. The company's broad line of access and transport networking solutions enables the full range of multi-play services, including residential and business broadband, VoIP, IPTV, and Ethernet. Zhone's converged access platform improves network agility and reduces costs, allowing operators to rapidly deploy premium services on their existing copper and fiber infrastructure while providing a seamless migration path to an efficient, all-IP network. www.zhone.com
Contact:
Zhone Technologies
Susie Choy, +1 510-777-7013
Investor Relations
Fax: +1 510-777-7001
investor-relations@zhone.com
or
for Zhone Technologies
Tracy Oliver, +1 510-665-7984
Public Relations: The Americas
Mobile: +1 925-640-0989
tracy@skycastlemedia.com
or
Deborah Stevens, 01276 471240
Public Relations: EMEA
Mobile: 07962 066684
debbie@themessagemachine.com
Source: Zhone Technologies, Inc.
Zhone Technologies Names Key Additions to Executive Team
Tuesday July 17, 8:00 am ET
Organizational Strategy Set for Company-Wide Initiatives in Advanced Technology, Services, and Global Marketing
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines, today announced that it has aligned its executive roster to drive company-wide initiatives in advanced technology, customer service and support, and global marketing.
Ascend Technologies veteran and Zhone VP of product management and advanced technology Eric Presworsky has been named Zhone's chief technology officer. Presworsky will continue Zhone's tradition of helping operators grow revenues and reduce costs through innovation, by leading the company's development of the next generation of access and transport technologies.
"Eric is a proven innovator with deep knowledge of the access network," said Mory Ejabat, Zhone's chairman and CEO. "His drive, expertise, and ingenuity will be instrumental in extending our industry-leading technology roadmap with our customers."
"Operators are seeing the value in practice now of our unique approach to enabling communication service innovation on a converged, flexible access platform," said Eric Presworsky, Zhone's CTO. "Our customers' positive feedback is providing excellent fuel for our continued technology development."
Zhone's other management-team moves also reflect the company's focus on functional leadership for maximum customer value.
Steve Rogers is assuming responsibility as Zhone's vice president of product management. Rogers brings six years of experience at Zhone -- as VP of global service and support as well as in engineering management roles in release testing and other areas -- to the product leadership role. This experience equips him with a deep understanding of carriers' needs for flexibility and feature-richness in deployment as well as rock-solid performance in operation. Prior to Zhone, Rogers led product management for the access business unit at Nortel, where his products were widely recognized by operators for their value in their operations.
Steve Dick has joined Zhone to lead the company's global service and support (GSS) operation. He has an exemplary record in building GSS teams, measured in terms of revenues, Quality Assurance (QA) ratings, and 90th percentile customer satisfaction. He has led service organizations for Ascend, Lucent, and most recently IP Infusion, where he drove a 15 percent revenue gain while in charge of engineering, QA, professional services, customer support, and offshore development. Steve Dick has also held positions as the VP of customer service for Kana Software and VP of global service and support for Harmonic Inc. He holds an MBA in finance and marketing from Michigan State University and earned a BS in industrial engineering from Purdue University.
Zhone has also named Steven Glapa to lead Zhone's global marketing initiatives. Glapa comes to Zhone from ArrayComm, where as VP of marketing he worked closely with carriers to clarify network economics value driven by new technology and repositioned the company for success in Multiple-Input/Multiple-Output (MIMO) software for WiMAX and 3G wireless systems Glapa's prior experience also includes roles at Booz-Allen and Hamilton, developing strategy for Fortune 100 clients; at Lucent Technologies, as vice president and general manager of IP messaging and applications; and at Banter, a customer service software startup later acquired by iPhrase. Glapa holds an MBA from Colombia University, a BS in mechanical engineering and computer science from George Washington University, and a BA in physics from Carleton College.
"As a technology and customer service driven access company, the new executive roster reflects these core values and is readied to execute the next phase of the company's growth," said Kirk Misaka, Zhone's chief financial officer. "This management team has an outstanding combination of technology and cross functional business expertise, coupled with strong individual track records in growing global operations."
"Customer service is an orienting principle for Zhone and extends to our technology and every person in the company," said Mory Ejabat. "The first rule of customer service is product excellence and Zhone is utilizing the right combination of people and technologies to ensure our customers innovative, easy to manage products at an optimal value, paired with a service experience that sets the standard for our industry."
About Zhone Technologies -- Access for a Converging World
Zhone Technologies, Inc. (NASDAQ:ZHNE - News) is a provider of advanced communications equipment to more than 600 operators worldwide. The company's broad line of access and transport networking solutions enables the full range of multi-play services, including residential and business broadband, VoIP, IPTV, and Ethernet. Zhone's converged access platform improves network agility and reduces costs, allowing operators to rapidly deploy premium services on their existing copper and fiber infrastructure while providing a seamless migration path to an efficient, all-IP network. www.zhone.com
Contact:
for Zhone Technologies, Inc.
Investor Relations
Susie Choy, +1 510-777-7013
Fax: +1 510-777-7001
investor-relations@zhone.com
or
Public Relations: The Americas
Tracy Oliver, +1 925-931-9053
Mobile: +1 925-640-0989
tracy@skycastlemedia.com
or
Pubic Relations: EMEA
Deborah Stevens, 01276 471240
Mobile: 07962 066684
debbie@themessagemachine.com
Source: Zhone Technologies, Inc.
Zhone Technologies Sees Immediate Demand for New Intelligent FTTH Network Gateway and ITU G.984 GPON Multi-Service Platform
Tuesday June 12, 8:01 am ET
Customers Cite Layer 3 Gateway Intelligence and Multi-Service Platform Integration as Key to Profitable Roll-out of Multi-Play
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ: ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines today announced new customer wins for its zNID(TM) Intelligent Home Network Gateway and GPON Multi-Service Broadband Loop Carrier (BLC) Platform. Zhone's FTTH-GPON system simplifies installation and consolidates management of 100+ Mbps IPTV, VoIP and Ethernet services. Layer 3 intelligence paired with Zhone's TR-069 standard management system enables service providers to upgrade and remotely manage advanced services as seamlessly as managing DSL.
(Editors Note: See today's release, June 12, 2007 ZHONE INTRODUCES ITS INTELLIGENT HOME NETWORK GATEWAY AND STANDARDS-BASED GPON TO SIMPLIFY DEPLOYMENT AND MANAGEMENT OF FTTH Zhone will be showing the zNID Intelligent Home Network Gateway and GPON-Multi-Service BLC at NXTcomm in booth 2226)
Zhone's announced customers include:
* Consolidated Communications Holdings Inc., (NASDAQ:CNSL - News)
* Taylor Telephone Cooperative
* Yadkin Valley Telecom
All three customers cited Layer 3 intelligence in Zhone's FTTH Home Network Gateway and Zhone's Multi-Service BLC platform strategy as key motivators in their decision processes. Customers can rapidly deploy GPON powered services by simply adding Zhone's OLT line card to the MALC BLC. Zhone's GPON and Intelligent FTTH Network Gateway provides carriers with increased network agility and end to end management of voice, media, ultra high-speed Ethernet and home networking services with one integrated system. This translates into compounded efficiencies, from consolidated equipment and management systems, to space and energy conservation.
"Enriched video including HD, VOD and HDVR is the key driver for GPON," said Teresa Mastrangelo, principal analyst for broadbandtrends.com. "Zhone has the advantage of delivering standards-based GPON using a field proven platform with customers that have a track record of profitability delivering next generation video services using Zhone's Multi-Service BLC."
"Zhone's FTTH gateway and GPON system will speed the rollout of our HD service portfolio," said Tom White vice president of engineering for CCI. "Layer 3 integration with guaranteed QoS will greatly simplify management while ensuring excellent service and media quality to our IPTV customers."
In addition to improved management and QoS, by using standard coax and the phone wire existing in most homes for installation and battery power, service providers eliminate the risk and customer disruption of in-home drilling. Conservative savings estimates in installation alone are 70 percent. Zhone's dual wiring ability also ensures complete home coverage.
"We've integrated ultra high capacity bandwidth throughout the entire home so it becomes as inconspicuous and intuitive to the end-consumer as electricity," said Eric Presworsky vice president of product management and advanced technology.
zNID mounts to the outside of the house in a sturdy thermal enclosure so all the customer sees within the home are intuitive interface jacks for VoIP, Ethernet and IPTV. The zNID Intelligent Home Gateway also supports pre-provisioning so the enclosure can be installed in Greenfield housing developments and the electronic panel can be added after services have been ordered.
Designed to address today's evolving network infrastructures, Zhone's integrated platform strategy lets Operators deliver a breadth of advanced services using fiber or copper. Rather than kludging network elements and disparate equipment, service providers can provision Gigabit Passive Optical Networks (GPON), Ethernet in the First Mile (EFM) DSL and traditional TDM services from one powerful converged platform.
"Instead of installing single purpose GPON in anticipation of future revenues, the system is delivering core voice and data services today, said Steve Singletary, manager of operations for Taylor Telephone Cooperative "We can still configure subscriber bandwidth in granular increments. Adding OLT line cards to our existing MALC systems enables us to serve more customers with less equipment and energy while ensuring scaleable capacity to add IPTV, HD and VOD to our service portfolio as demand grows."
"Zhone has an extremely well planned solution," said Jim Crabtree, general manager of Yadkin Valley Telephone Membership Corp., a regional provider extending IPTV, VoIP and data services to communities in the Southeast. "Post installation we can upgrade or change services without future truck rolls and manage the system using the same server we use for standard DSL services."
In addition to state of the art digital media services, Zhone's GPON -FTTH Gateway system supports traditional voice and video. End-consumers also have anytime-access to their home networks by mobile phone or web browser via a password protected Virtual Private Network (VPN).
"Due to fast decision cycles, and the drive to provide competitive services, Independents, PTTs and CLECs are some of the earliest movers in provisioning differentiated packet media services," said Mike Fischer, vice president of sales for Zhone Technologies. "We believe we're delivering the system of choice for this market by offering scaleable, consolidated systems that help service providers maximize existing assets."
The Zhone Difference
Zhone's MALC GPON platform coupled with the zNID Intelligent Home Network Gateway simplifies the provisioning and management of FTTH multi-play services while providing unique consumer offerings for true next generation home networking.
MALC GPON & zNID Intelligent FTTH Media Gateway System - FTTH Simplified
* ITU G.984 standard GPON
* Fully configurable bandwidth per subscriber up to 2.5 Gbps
* Dedicated IP Video Multicast Channel with RF Overlay support
* Auto discovery for easy service tune up
* Simple line card upgrade for large existing MALC installed base
* Optimized price/capacity for first-moving Independents, PTT's and CLECs
Zhone's zNID Intelligent Home Network Gateway
* Easy installation and management of advanced media and home networking services
* Dual wiring support guarantees complete home coverage with no new wiring
* Intuitive end-user interfaces and value added networking features
* VoIP, Ethernet and IPTV via standard coax and/or phone lines, POTs and SDTV support
* Remote monitoring & addition of new services - advanced QoS
* Standard management system already used with millions of DSL installations
* Supports HomePNA the preferred international home networking standard
* Single system solution includes firewall security
* Password protected VPN for anywhere connectivity
* Rapidly deploy 100 + Mbps to every home for state of the art multimedia networks
About Zhone Technologies - Access for a Converging World
Zhone Technologies, Inc. (NASDAQ: ZHNE - News) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone's market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company's products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines. Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)) www.zhone.com
Contact:
Investor Relations
Susie Choy, 510-777-7013
Fax: 510-777-7001
investor-relations@zhone.com
or
Public Relations: The Americas
Tracy Oliver, 925-931-9053
Mobile: 925-640-0989
tracy@skycastlemedia.com
or
Pubic Relations: EMEA
Deborah Stevens, 01276 471240
Mobile: 07962 066684
debbie@themessagemachine.com
Source: Zhone Technologies, Inc.
Positive volume balance suggest this could break out to a higher high.
Zhone Continues Strong Gains in Global BLC Market
Monday May 21, 8:00 am ET
Newest Research Shows Quarterly Data-Port Shipments More Than Double Over Other Suppliers
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over both copper and fiber access lines, today announced first quarter results for 2007 from the research firm, broadbandtrends.com. Results show that Zhone continues its rolling four-quarter lead in Broadband Loop Carrier (BLC) DSL shipments worldwide. Zhone also ranked number one in first-quarter BLC - DSL port shipments with more than a 120 point lead over the number two supplier for last quarter. In the combined BLC voice and data port category, Zhone led the worldwide market by over 40 percent.
Teresa Mastrangelo, the author of the quarterly research report, cited upgrade activity as the key market driver behind DSL gains. Other trends included Central America/Latin America (CALA) surpassing North America in quarterly DSL port shipments for the first time. Ms. Mastrangelo noted, due to unexpected seasonality, shipments in the Multi-Service Access Platform (MSAP) and BLC categories declined overall last quarter. However Zhone bucked this trend, showing healthy gains of more than 70 percent.
"Zhone's strength comes from a diverse and loyal customer base of more than 600 operators worldwide," said Mike Fischer, Zhone's vp of sales. "With Zhone's BLC, our customers can provide basic voice and data and roll-out next-generation services on demand. This has resulted in a first-to-market advantage in IPTV or VoIP markets for our customers."
In addition to high-speed data and POTs voice, Zhone's BLC enables rapid provisioning of premium Voice over IP and IPTV services via fiber or copper access lines. Zhone also provides the only BLC platform to support fast-growth Ethernet in the First Mile (EFM) services.
About Zhone Technologies, Inc.
Zhone Technologies, Inc. (NASDAQ:ZHNE - News) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone's market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company's products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines. Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). www.zhone.com
Contact:
Zhone Technologies, Inc.
Susie Choy, +1 510-777-7013 (Investor Relations)
Fax: +1 510-777-7001
investor-relations@zhone.com
or
Public Relations: The Americas
Tracy Oliver, +1 925-931-9053
Mobile: +1 925-640-0989
tracy@skycastlemedia.com
or
Pubic Relations: EMEA
Deborah Stevens, 01276 471240
Mobile: 07962 066684
debbie@themessagemachine.com
Source: Zhone Technologies, Inc.
well another insighter special here.
he got us in at 1.18 and said there was millions of shares being gobbled up by insiders.
sure enough we are about to hear some blowout numbers or an awesome announcement.
3 days til 19th, lets see how long it takes to be a double.
This stock has some of the largest insider buying that I have seen. Over 31 million has been dumped into it by insiders with only 100,000K being sold. A very large amount of insider buying has been happening within the last week, I am going to keep a very close eye on this company.
Anyone following this stock? I have owned it for a while and it doesnt appear to have much interest.
Zhone Technologies to Report Fourth Quarter 2006 Financial Results
Thursday January 4, 7:00 am ET
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over both copper and fiber access lines, announced today that the company will report its fourth quarter 2006 financial results on Thursday, January 25, 2007, after the close of regular market trading.
Zhone will conduct a conference call and audio webcast to discuss further details of its fourth quarter 2006 results at approximately 2:00 p.m. PT / 5:00 p.m. ET on Thursday, January 25, 2007. This call is open to the public by dialing +1 (866) 700-6293 for U.S. callers and +1 (617) 213-8835 for international callers and then entering passcode 11277115. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/about/investors/.
A replay of the conference call will be available for approximately one week after the original call by dialing +1 (888) 286-8010 for U.S. callers and +1 (617) 801-6888 for international callers and then entering passcode 90551835. An audio webcast replay will also be available online at http://www.zhone.com/about/investors/ for approximately one week following the original call.
About Zhone Technologies, Inc. (www.zhone.com)
Zhone Technologies, Inc. (NASDAQ:ZHNE - News) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone's market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company's products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). For more information, please visit www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2007 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Susie Choy, +1 510-777-7013 (Investors)
Fax: +1 510-777-7001
investor-relations@zhone.com
or
Zhone Public Relations, +1 510-777-7020 (Media)
Fax: +1 510-777-7001
public-relations@zhone.com
Source: Zhone Technologies, Inc.
Zhone Announces 4G Fibre Channel Support for Storage Area Networking Applications
Tuesday November 7, 7:00 am ET
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over both copper and fiber access lines, announced today the introduction of the GMFC4 line card to its existing GigaMux 6400 optical transport product line. With support for all leading data and SAN protocols, the GMFC4 brings flexible and expandable data service transport at an industry-leading price.
Optimized for Storage Area Networks (SAN) and Ethernet datacenters, the GMFC4 provides four client and four line-facing interfaces for connectivity to switches, servers, and WDM equipment. As service providers look at combining SAN and Ethernet services and focus on the ability to upgrade within a single system, the GMFC4 provides the flexibility for deployment today and expansion tomorrow. With support for Gigabit Ethernet, 1G, 2G, and 4G Fibre Channel on any interface, the GMFC4 allows providers to deploy a single solution that supports all common data interfaces. Simple software configuration allows complete control over each individual port allowing for mixes of any data protocol between the ports. Providers can deploy 1G or 2G Fibre Channel today and can upgrade to 4G without any new hardware.
All client and DWDM line-side interfaces are SFP based, supporting 850 nm, 1310 nm, and standard 100 Ghz-spaced ITU DWDM channel spacing. By natively carrying 4G clients over 4G wavelengths, the GMFC4 provides a significant cost-savings over multiplexed solutions based on 10G line-side optics. In addition, the GMFC4 can be used in any standard GigaMux 6400 shelf providing immediate expansion of existing networks as well as additional support for data and TDM applications as required by the customer.
"Customers have deployed the GMFC4 line card both as an expansion to an existing system and as a new deployment, enabling high-density SAN aggregation trunks between datacenters," said Chris Garcia, Senior Product Manager for Zhone's WDM Optical Transport group. "Using pluggable optics not only lowers their solution cost but significantly lowers sparing and other ongoing operational costs. With thousands of nodes deployed worldwide, the GigaMux is a proven transport platform. The GMFC4 continues the GigaMux tradition of focus on the SAN market and its optical transport requirements."
The GigaMux 6400 provides a high density DWDM optical transport platform for MSO, Telecom, and Data/SAN providers worldwide. Integrated filters, amplifiers, and line cards enable complete platform integration within a single shelf. Native support for SONET/SDH services, Ethernet, and Fibre Channel at speeds up to 10 Gbps allows service providers to deploy services as needed and enabling new services as they are developed and deployed with a proven pay-as-you-grow architecture.
About Zhone Technologies, Inc.
Zhone Technologies, Inc. (NASDAQ: ZHNE - News) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone's market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company's products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). For more information, please visit www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Susie Choy, +1-510-777-7013 (Investors)
Fax: +1-510-777-7001
investor-relations@zhone.com
or
Zhone Public Relations
+1-510-777-7020 (Media)
Fax: +1-510-777-7001
public-relations@zhone.com
Source: Zhone Technologies, Inc.
Zhone Teams With Technology Partners to Demonstrate Enhanced IP Triple Play Services at TelcoTV 2006
Tuesday October 31, 7:00 am ET
OAKLAND, Calif.--(BUSINESS WIRE)--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over both copper and fiber access lines, will demonstrate the latest advances in IPTV and VoIP services in booth 713 at TelcoTV in Dallas, November 6-8. Zhone's comprehensive product portfolio will also be on display.
The demonstration will feature working IPTV services from a live headend and show the MALC's interoperability with IPTV systems and devices. Zhone will also utilize a range of modem and ONT devices it manufactures to connect IPTV services to a variety of IP set top boxes.
Zhone's technology partners Tut Systems, Kasenna, Amino, SecureMedia, Foundry Networks and MetaSwitch will also participate.
The demonstration will highlight HDTV over MPEG-4 AVC compression from a Tut Astria® headend content processor to an Amino 130 MPEG-2/MPEG-4 standard and high definition IP set top box. Kasenna will supply the VOD server for content as well as the middleware used for the working demo. SecureMedia will provide its conditional access encryption for digital content. Foundry's Ethernet switch will be used for the hub and aggregation of IP services, and MetaSwitch will be used for a live VoIP demonstration over the Internet.
Other TelcoTV activities include a Zhone sponsored breakfast and panel presentation Tuesday morning featuring guest speaker Will Flannery, VP, Advanced Services Group, Fox Cable Networks. Tuesday afternoon from 4:30-5:30, Zhone will also participate in a TelcoTV panel discussion focusing on IPTV services and emerging opportunities for operators.
"Zhone appreciates our technology partners' contributions and support at TelcoTV," commented Steve Klein, Zhone's Director of Video Solutions. "We share common customers and a common vision, along with a strong commitment to deliver solutions that enable carriers to successfully deploy IPTV and Triple Play services. Our enhanced IPTV and VoIP demonstration will highlight the level of cooperation Zhone has established with its partners to deliver integrated and proven service solutions."
The IP Triple Play demonstration will feature Zhone's Multi-Access Line Concentrator (MALC), the most complete access platform optimized for delivery of IPTV and Triple Play services over both copper and fiber on the market today. The demonstration will showcase the MALC's ability to deliver IPTV over ADSL2+, VDSL2 and Active Ethernet from a single MALC chassis. In addition, the MALC will act as a distributed multicast router for IGMP.
"This demonstration of multi-vendor IPTV and VoIP services will illustrate how the MALC is capable of delivering commercially deployable and revenue producing IPTV and VoIP services from a single access platform," adds Klein.
About Zhone Technologies
Zhone Technologies, Inc. (NASDAQ:ZHNE - News) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone's market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company's products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). For more information, please visit www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
About Tut Systems, Inc.
Tut Systems, Inc. delivers advanced content processing and distribution products as well as comprehensive system integration services for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies worldwide use Tut Systems solutions to deliver broadcast-quality video over broadband networks. Tut Systems is headquartered in Lake Oswego, OR. For more information visit www.tutsys.com.
About Kasenna
Kasenna -- The IPTV Company(TM) -- is a leading provider of video-on-demand (VOD) content and MPEG-4 ready IPTV applications for triple play services over broadband networks. Kasenna PortalTV is a fully-integrated IPTV solution that enables telecom service providers, cable operators and others to generate additional revenue, increase profits and raise customer satisfaction by delivering advanced television services.
Proven through dozens of global deployments, Kasenna's patented software technology is built on open standards, allowing providers to easily customize services and the viewer experience. Through its subsidiary ViewNow, Kasenna offers the industry's only turnkey IPTV solution that includes scalable IP video infrastructure, subscriber applications, and VOD programming. Kasenna is a privately-held company with headquarters in Sunnyvale, California, and office locations worldwide. For more information, please visit www.kasenna.com.
About Amino Communications
Amino Communications (www.aminocom.com) supplies the AmiNET(TM) series of set-top boxes renowned for their low-cost and reliability. The AmiNET range materially reduces service operators' capital expenditure, whilst offering the full range of specification required; MPEG2 and MPEG4 encoding standards, standard and high definition TV, personal video recording and home networking. The high performance coupled with the innovative design of Amino's set-top boxes have brought the series industry accolades and the company a leading position within the IPTV market.
Approximately 700,000 AmiNET IPTV set-top boxes have been used in over 50 countries worldwide by more than 500 customers in commercial deployments and trials. The set-top boxes have also been sampled by another additional 700 customers. Amino Communications' principal customers are telecommunications, broadcast and hospitality service operators. Generally, AmiNET products are supplied with the IntAct(TM) IPTV software stack pre-loaded.
Amino Communications is a wholly owned subsidiary of Amino Technologies plc. Listed on the London Stock Exchange AIM, symbol AMO. Amino is based near Cambridge, UK, and has offices in Atlanta (Georgia) and Hong Kong.
About SecureMedia
SecureMedia Inc. is the leading provider of proven open platform content protection software for the delivery of video-on-demand, IPTV, multimedia and other digital content over broadband IP networks. The Company enables "Entertainment Everywhere!(TM)" by providing a range of content security solutions from the comprehensive Encryptonite ONE(TM) System CA/DRM software suite to software toolkits, hardware cores and plug-ins for third party media delivery systems. SecureMedia's customers represent industry leaders and include Cavalier Telephone, Reeltime Infotainment, TV Sierre, Sony, China Data Broadcasting, Eona and others.
About MetaSwitch
MetaSwitch is an industry-leading vendor of IP Multimedia Subsystem (IMS) switching and applications solutions for both packet and circuit-switched networks. Its widely deployed call agent, media/signaling gateway and application server platform supports a full range of legacy Class 4/5 capabilities and hosted unified communications services, and scales from a few hundred to millions of subscribers in both integrated and distributed configurations. Customers include incumbent and competitive local exchange carriers, as well as operators of broadband wireless, cable and fiber networks. MetaSwitch is a division of established telecom technology provider Data Connection. The company is consistently profitable and privately held, with main US offices in California and Virginia, and European headquarters in London, UK. For more information: www.metaswitch.com.
About Foundry Networks
Foundry Networks, Inc. (Nasdaq:FDRY - News) is a leading provider of high-performance enterprise and service provider switching, routing, security, and Web traffic management solutions including Layer 2/3 LAN switches, Layer 3 Backbone switches, Layer 4 - 7 application switches, wireless LAN and access points, access routers and metro routers. Foundry's 10,000 customers include the world's premier ISPs, metro service providers, and enterprises including e-commerce sites, universities, entertainment, health and wellness, government, financial, and manufacturing companies. For more information about the company and its products, call 1.888.TURBOLAN or visit www.foundrynetworks.com.
Contact:
Zhone Technologies, Inc.
Susie Choy, +1 510-777-7013 (Investors)
investor-relations@zhone.com
Fax: +1 510-777-7001
Zhone Public Relations
+1 510-777-7020 (Media)
+1 510-777-7001 (Media)
public-relations@zhone.com
Source: Zhone Technologies, Inc.
Zhone Technologies sees Q4 revenue below analysts' view
Thu Oct 19, 2006 7:11pm
Network equipment maker Zhone Technologies Inc. (ZHNE.O: Quote, Profile, Research) on Thursday forecast fourth-quarter revenue slightly below analysts' expectations.
In a conference call with investors, the company said it expects revenue of $43 million to $45 million for the quarter.
Analysts on average expect revenue of $45.4 million for the quarter, according to Reuters Estimates. In the year-ago quarter, th company had posted revenue of $53.2 million.
Most of the company's revenue comes from its single line multi-service (SLMS) and legacy businesses. Telecommunication service providers use SLMS to offer bundled broadband Internet access, voice, and broadcast video services to subscribers.
In the call, Chief Financial Officer Kirk Misaka said, "Going forward we expect our single line multi-service architecture to overtake the legacy business as legacy customers migrate to the next generation solution."
Earlier in the day, the company, which has been posting losses for the last few quarters, reported a sequential decline in revenue from its SLMS business.
In the call, the company said the decline is not indicative of a new trend and "barely represents a shortfall in international revenue and a temporary strike in legacy and service revenue."
The company also said it expects gross margins of 35 percent to 37 percent for the fourth quarter. The company reported third quarter margins of 35 percent.
Zhone cited increased revenue and outsourced manufacturing of some of its SLMS products for the expected sequential increase in gross margins.
Shares of the company fell about 5 percent in late electronic trading after closing at $1.07 on Nasdaq. (Reporting by Satrajit Majumder in Bangalore)
© Reuters 2006. All Rights Reserved.
Zhone Technologies to Present at ThinkEquity Partners Growth Conference
Thursday September 7, 7:00 am ET
Webcast Scheduled for 9:30 a.m. (PDT) on Tuesday, September 12, 2006
OAKLAND, Calif.--(BUSINESS WIRE)--Sept. 7, 2006--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and video worldwide, announced today that Chairman and Chief Executive Officer Mory Ejabat will present at the ThinkEquity Partners 4th Annual Growth Conference on Tuesday, September 12, 2006 from 9:30 to 10:00 am in San Francisco at the Ritz Carlton Hotel.
Zhone will conduct a live webcast of the presentation. To access the webcast over the Internet, please go to http://www.zhone.com. Rebroadcast of the presentation will be available shortly after the conclusion of the session and can be accessed over the Internet at http://www.zhone.com.
About Zhone Technologies, Inc.
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Susie Choy, 510-777-7013 (Investors)
Fax: 510-777-7001
investor-relations@zhone.com
or
The Message Machine Ltd
Anne Harding, +44 1895 631448 (EMEA Media)
anne@themessagemachine.com
Source: Zhone Technologies, Inc.
Form 8-K for ZHONE TECHNOLOGIES INC
1-Sep-2006
Entry into a Material Definitive Agreement, Financial Statements and Exhib
Item 1.01 Entry into a Material Definitive Agreement.
At a regularly scheduled meeting of the Compensation Committee of the Board of Directors of Zhone Technologies, Inc. held on August 10, 2006, the Compensation Committee conducted an evaluation and review of the performance and compensation levels for Zhone's executive officers. To reward and retain employees in a manner that aligns the interests of employees with stockholders, the Compensation Committee, which is composed entirely of independent directors, determined that it is advisable and in the interests of the company and its stockholders to award stock options to employees, including executive officers. The awards to the executive officers are summarized in the following table:
Number of Shares
Underlying Options
Name and Position Awarded (1)
Morteza Ejabat
Chairman, Chief Executive Officer and President 950,000
Kirk Misaka
Chief Financial Officer, Treasurer and Secretary 400,000
(1) The shares subject to the options will vest in 48 equal installments over the course of four years.
The Compensation Committee also approved an amendment to the form of Stock Option Agreement for the Zhone Technologies, Inc. Amended and Restated 2001 Stock Incentive Plan to be used for future option grants. The amendment reduces the time period in which options may be exercised from ten years to seven years from the date of grant. A copy of the amended and restated form of Stock Option Agreement is filed as an exhibit to this report and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) The following exhibits are filed herewith:
Exhibit
Number Description of Exhibit
10.1 Form of Stock Option Agreement for the Zhone Technologies, Inc.
Amended and Restated 2001 Stock Incentive Plan.
Zhone Technologies Enables Working Demonstration of MPEG-4 High Definition IPTV over DSL at IBC
Tuesday August 29, 7:00 am ET
IBC Showcase Combines Leading Technology to Deliver Practical and Cost Effective Triple Play Services
OAKLAND, Calif.--(BUSINESS WIRE)--Aug. 29, 2006--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), and its partners Tut Systems and Amino Communications, will be unveiling high quality HDTV broadcast using MPEG-4 Advanced Video Codec (AVC) over xDSL as part of a working IPTV demonstration at IBC September 8-12 at the RAI Congress Centre, Amsterdam, on Stand 4.256.
Zhone will feature its MALC Broadband Loop Carrier (BLC) access system for delivering enhanced IP services, including IPTV. Both MPEG-2 and MPEG-4 standard definition and high definition video services will be demonstrated using ADSL2+, VDSL2 and Active Ethernet from a single MALC platform. High speed data and VoIP services will also be included as part of a triple play solution. Zhone will also show its high performance CPE products including ADSL2+ and VDSL2 routers and an Active Ethernet ONT to terminate services at the subscriber.
"The Telco industry has long awaited a practical implementation of HDTV over DSL using MPEG-4 compression," commented Steve Klein, Director Video Solutions for Zhone Technologies. "Zhone is delighted to be among the first to publicly show a fully functional and working demonstration at IBC. The availability of MPEG-4 AVC compression of HDTV over IP alters the playing field in favor of telephone carriers who can now position IPTV over DSL against cable and satellite operators, who have used HDTV as a competitive weapon."
Tut Systems will showcase its Astria® content processor (CP) with its new MPEG-4 AVC HD transcoding solution, along with standard definition MPEG-2 and MPEG-4 AVC compression technology. Astria is a carrier class digital headend system favored and used by telco's worldwide, with more than 160 Tut-powered IPTV systems deployed today.
Amino Communications will provide its new single chip AmiNET 130 IPTV set-top box that supports MPEG-2/MPEG-4 and HD/SD. Other Amino IP set-top models will also be used as part of the demo.
Other Zhone partners participating in the demo include Minerva Networks, whose middleware will be used to demonstrate IPG, VOD, PVR, Mosaic PIP and Caller ID/TV functionality. Kasenna will provide the VOD system integrated with Minerva demonstrating both standard definition and high definition streaming video.
Visit Zhone at Stand 4.256 to receive a personal demonstration of triple play and BLC capabilities. Zhone will also have on display its full line of products including GigaMux WDM optical transport and IPD DSLAM's.
About Tut Systems, Inc.
Tut Systems, Inc. delivers advanced content processing and distribution products as well as comprehensive system integration services for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies worldwide use Tut Systems solutions to deliver broadcast-quality video over broadband networks. Tut Systems is headquartered in Lake Oswego, OR. For more information visit www.tutsys.com or call (971) 217-0400.
About Amino
Amino Communications (www.aminocom.com) supplies the AmiNET(TM) series of set-top boxes renown for their low-cost and reliability. The AmiNET range materially reduces service operators' capital expenditure, whilst offering the full range of specification required; MPEG2 and MPEG4 encoding standards, standard and high definition TV, personal video recording and home networking. The high performance coupled with the innovative design of Amino's set-top boxes have brought the series industry accolades and the company a leading position within the IPTV market. Amino Communications is a wholly owned subsidiary of Amino Technologies plc. listed on the London Stock Exchange AIM, symbol AMO. Amino is based near Cambridge, UK, and has offices in Atlanta, Georgia, and Hong Kong. PR contacts for Amino: Jenna Keighley, EML, +44 (0)20 8408 8000, amino@eml.com
About Zhone Technologies, Inc.
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Susie Choy, 510-777-7013 (Investors)
Fax: 510-777-7001
investor-relations@zhone.com
or
The Message Machine Ltd
Anne Harding, +44 1895 631448 (EMEA Media)
anne@themessagemachine.com
Source: Zhone Technologies, Inc.
Zhone Technologies Selects CTDI for Contract Manufacturing
Tuesday July 18, 7:00 am ET
Zhone Expands Capacity and International Distribution Capabilities Through Expanded Relationship With World-Class Manufacturing Firm
OAKLAND, Calif.--(BUSINESS WIRE)--July 18, 2006--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that Communications Test Design, Inc. (CTDI) has been selected to perform manufacturing and assembly for some of Zhone's Single Line Multi-Service (SLMS(TM)) products.
The CTDI Hungary plant, located in Budapest, is a 50,000 square-foot manufacturing facility with capabilities that include surface mount technology parts placement, electronic assembly and testing. CTDI is ISO 9001 certified and its award-winning world-class technical staff and diverse suite of telecommunication services are able to support all aspects of manufacturing functions for some of Zhone's high run-rate products.
The Budapest facility enables Zhone to offshore its manufacturing of high volume products with an award-winning world class manufacturer. As a result, Zhone achieves immediate cost benefits and Zhone's growing international customer base enjoys accelerated delivery intervals. Under terms of the agreement, CTDI's Hungary facility will be providing both manufacturing and warranty repair services for some of Zhone's market-leading SLMS products.
"CTDI is a proven leader in contract manufacturing, logistics and repair," said Ed Thompson, vice president of operations for Zhone. "Our selection of CTDI as a supply chain partner allows Zhone to maintain its quality commitment while improving our operations overhead."
"CTDI is pleased with the opportunity to expand its relationship with Zhone, a leading supplier in the telecommunications industry," said Jerry Parsons, Chairman and CEO of CTDI. "We look forward to providing Zhone with the quality manufacturing services that are essential to its success."
About CTDI
A premier Telecommunications service company headquartered in West Chester, Pennsylvania. CTDI has provided groundbreaking maintenance and product service solutions to the global telecommunications industry since 1975. Today, CTDI offers the most comprehensive Service Portfolio in the industry that includes: Wireline Repair & Logistics, Wireless Repair & Logistics, Engineering and Installation services, Global Supply Chain solutions and Product Engineering & Manufacturing. Today, CTDI services Original Equipment Manufacturers (OEM) and Carriers from 37 international strategic repair and logistics locations supported by an experienced team of over 3,500 telecommunications professionals. CTDI feels we are the best in the industry at what we do and has a company-wide commitment to achieving service excellence.
About Zhone Technologies, Inc. (Zhone)
Zhone designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
Fax: 510-777-7001
public-relations@zhone.com
Investors, 510-777-7013
Fax: 510-777-7001
investor-relations@zhone.com
www.zhone.com
Source: Zhone Technologies, Inc.
Zhone Technologies to Report Second Quarter 2006 Financial Results
Wednesday July 5, 2006
7:00 am ET
OAKLAND, Calif.--(BUSINESS WIRE)--July 5, 2006--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data, video and entertainment services worldwide today announced the company will report its second quarter 2006 financial results on Thursday, July 20, 2006, after the close of regular market trading.
Zhone will conduct a conference call and audio webcast to discuss further details of its second quarter 2006 results at approximately 2:00 p.m. PT / 5:00 p.m. ET on Thursday, July 20, 2006. This call is open to the public by dialing +1 (800) 901-5218 for U.S. callers and +1 (617) 786-4511 for international callers and then entering passcode 65427223. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/about/investors/.
A replay of the conference call will be available for approximately one week after the original call by dialing +1 (888) 286-8010 for U.S. callers and +1 (617) 801-6888 for international callers and then entering passcode 82526347. An audio webcast replay will also be available online at http://www.zhone.com/about/investors/ for approximately one week following the original call.
About Zhone Technologies, Inc. (www.zhone.com)
Zhone designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
Fax: 510-777-7001
public-relations@zhone.com
Susie Choy, 510-777-7013 (Investors)
Fax: 510-777-7001
investor-relations@zhone.com
Source: Zhone Technologies, Inc.
Primus Telecommunications Canada Selects Zhone and Tekelec for New Service Delivery
Tuesday June 27, 7:00 am ET
Interoperable Products Deliver Cost-Effective Solution for Canada's Largest Pure-Packet Voice and Data Service Provider
OAKLAND, Calif. & MORRISVILLE, N.C.--(BUSINESS WIRE)--June 27, 2006--Zhone Technologies, Inc. (NASDAQ:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, and Tekelec (NASDAQ:TKLC - News), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, announced today that Primus Telecommunications Canada (Primus Canada) is deploying the companies' joint solutions. Primus, the largest alternative communications company in Canada, has selected and deployed Zhone's Multi-Access Line Concentrator (MALC(TM)), the Tekelec 6000 VoIP (voice over Internet protocol) Application Server and Tekelec 9000 Distributed Switching Solution (Tekelec 9000) for its DSL and local telephone service offering.
Primus Canada's residential local voice offering provides subscribers with full-featured VoIP services on what appears to the subscriber as a traditional local phone service. An elegant web portal extends subscribers advanced call features to include find-me/follow-me, call forwarding, personalized call treatments by caller and individualized hold music all over their existing telephones.
Because these advanced voice and data services are being delivered over the incumbent carrier's fixed copper loops, lifeline 911 emergency services remain fully supported and uncompromised. The services are being offered today in many urban areas across Canada, already reaching a market of approximately 3 million Canadian households.
As part of the offering, subscribers may select from a choice of broadband speeds up to 22 megabits per second. The solution allows subscribers to transform their existing local telephone service to include high-speed Internet service over the same telephone line simply, reliably and securely -- thereby reducing costs. Primus also offers a choice of long-distance services, including the very popular unlimited plans. Completing the triple-play bundle with the addition of IP video capabilities is under development and was a key consideration in Primus' vendor selection.
"We at Primus are committed to being the leader in delivering innovation," said Matt Stein, vice president, new technology and services at Primus Canada. "By providing the fastest download speeds in the country along with competitively priced bundles, innovative applications and a rapidly expanding footprint, Primus is reaffirming its position as a true industry innovator. This new threshold of Internet access speed, advanced features and savings provides a dramatically improved user-experience for our customers."
Primus Canada is providing these services to subscribers using Zhone's MALC. Zhone's 48-port Flexband line card allows both POTS voice and DSL data service to be delivered over a single line. MALC allows Primus to deliver carrier class line-powered voice services to their subscribers over existing telephone lines without the need for new equipment in the subscriber's home.
MALC supports integrated gigabit Ethernet and Resilient Packet Ring (RPR) technology to efficiently and cost-effectively handle both analog voice and digital packet traffic including multicast and broadcast video.
The Tekelec 6000 provides a migration to consumer broadband, mobility, IP Centrex and hosted PBX service delivery for service providers and their IP telephony customers. The Tekelec 6000 telephony application server is an integrated, scalable, standards-based solution that delivers revenue-generating applications out of the box, works with a wide range of network equipment and protocols and offers ease of administration while reliably supporting an almost unlimited number of customers with their own secure configurations.
An ideal cap-and-grow solution, the Tekelec 9000 enables a smooth migration from traditional circuit-based networks to next-generation packet-based technology. Built to natively switch packet, TDM (time division multiplexing) and ATM (asynchronous transfer mode) traffic, the carrier-grade, distributed softswitch provides an extremely cost-effective alternative for both TDM-only and packet/TDM applications. Any service can be switched to any other service using a single gateway, and the Tekelec 9000 delivers density and growth unmatched in the market today.
Zhone and Tekelec announced a global joint marketing agreement in 2005 to offer carriers a complete and integrated access/switching solution for delivering reliable, revenue-generating voice and data services.
"The relationship with Zhone extends the benefits of Tekelec's switching portfolio both in North America and beyond," said Jay Whitehurst, president and general manager of the Tekelec Switching Solutions Group. "The combined solution delivers uncompromising reliability and scale that is not matched with any other solution set on the market today. Zhone will bolster Tekelec's strategy to grow our market leadership in next-generation networks globally and across Tekelec's entire switching product portfolio."
David Markowitz, vice president of marketing for Zhone, said, "Zhone's MALC, the Tekelec 6000 VoIP Application Server and the Tekelec 9000 provide a smooth migration to packet networks. The combined solution allows carriers to deploy services today using TDM circuit technology and to migrate entirely to IP packet access and transport as their needs and networks dictate -- without incremental hardware."
About Primus Telecommunications Canada
Primus Telecommunications Canada Inc. is the largest alternative communications carrier in Canada with over 1,000,000 retail customers. The Company offers facilities-based voice, data, e-commerce, Web hosting, VoIP and Internet services. As a leading Internet service provider in Canada, Primus Canada has over 60,000 Internet subscribers served by a national network of Internet points-of-presence (POPs) for dedicated and dial-up access. Primus Canada also offers local services to businesses, bundling them with its long distance and Internet services. The Company has a fully redundant and diverse SONET network across Canada, extending from Quebec City to Victoria. Primus Canada's national network consists of nationwide switches with international connectivity through its parent company's global network, and ATM and IP nodes at major cities across the country. These network elements provide an integrated and converged backbone for all of Primus Canada's voice, data, VoIP, Internet and private line services. Primus Canada is a wholly owned subsidiary of McLean, Virginia-based Primus Telecommunications Group, Incorporated (NASDAQ:PRTL - News). Primus Canada news and information are available at the Company's Web site at www.PRIMUStel.ca.
About Tekelec
Tekelec is a high-performance network applications company that is accelerating the transition to IP Multimedia Subsystem (IMS) networks for service providers around the globe. With its experience at the intersection of network applications and session control, Tekelec creates highly efficient platforms for managing media and delivering network solutions. Corporate headquarters are located near Research Triangle Park in Morrisville, N.C., with research and development facilities and sales offices throughout the world. For more information, please visit www.tekelec.com.
About Zhone Technologies, Inc. (Zhone)
Zhone designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
fax: 510-777-7001
public-relations@zhone.com
Investors, 510-777-7013
fax: 510-777-7001
investor-relations@zhone.com
or
Tekelec
Joni King Brooks, 919-461-1065 (Media)
Joni.Brooks@Tekelec.com
Jim Chiafery, 919-461-6825 (Investors)
james.chiafery@tekelec.com
Source: Zhone Technologies, Inc.
Zhone Announces Newest Member of the IMACS Product Family, the IMACS 200
Thursday June 22, 2006
7:00 am ET
Integrated Solution for Advanced Voice and Data Applications
OAKLAND, Calif.--(BUSINESS WIRE)--June 22, 2006--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today the introduction of the IMACS 200 to its existing IMACS product line.
Optimized for the unique needs of electric utilities, the IMACS 200 system supports a wide range of specialty traffic, including transmission line protection control (EIA-232 electrical and IEEE C37.94 optical), SCADA, surveillance video, substation automation and alarms, radio, Ethernet and telephony.
The IMACS 200 system offers a powerful array of integrated network diagnostic and fault isolation capabilities. These include Bit Error Rate Testers, test tone and signaling state generation, digital and analog loop back-support, and remote configuration and control. IMACS 200 meets stringent standards criteria, such as IEEE 1613, RoHS, and CE, which means it can be deployed anywhere in the network.
Optimized for electrical utility sub-station applications, the IMACS 200 supports the latest IEEE C37.94 standard for data over fiber that is so critical to the secure operation of the electrical grid. Zhone's IMACS 200 can be deployed in harsh environments where conventional communications devices would not survive. Its smaller size and lower price points establish a new competitive benchmark. And its commonality with the Zhone IMACS family means minimal training and familiarization for existing IMACS customers.
"The concept of an integrated one box solution for advanced voice and data applications began with the introduction of the IMACS," said Joe Fortin, associate vice president of Zhone's TDM products group. "With more than 80,000 systems deployed worldwide, the IMACS is an established leader in the access marketplace. The IMACS 200 extends that tradition with an integrated solution optimized to economically address smaller port size applications."
An array of the most popular interfaces and features from the IMACS has been bundled into a small 2U chassis providing the ultimate in ease of installation. However, small in size does not mean small in feature content. Interfaces ranging from legacy RS-232, V.35, plus 2 and 4 wire analog voice, as well as the more modern Ethernet and C37.94 optical are all supported from the same access device, along with a flexible cross connect fabric for maximum use of existing T1 facilities.
Reliable communications are vital to any organization. The IMACS 200 addresses this need while providing compact size, low cost, and a high level of voice and data integration. This makes it an ideal choice for providing a variety of services to small end points and remote locations in any modern telecommunications network.
About Zhone Technologies, Inc. (Zhone)
Zhone designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2006 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
Fax : +1 510-777-7001
jmullens@zhone.com
Investors, 510-777-7013
Fax: +1 510-777-7001
investor-relations@zhone.com
Source: Zhone Technologies, Inc.
Should be some good results at the end of today.
Hope to see a good rise today and tomorrow.
Any body out there?
Sold all my shares at 2.75...adios, I'm out of this lame duck!
Eric
Guess I'm the only poster on this board. I'm hoping for continued uptick on the SP and a good week. I think this can be in the $3 range but am not holding my breath.
Have a safe and happy Easter!
Eric
Hoping for a good day on Monday! Ended on an uptick on Thursday!
Happy Easter!
Eric
Looking like a decent day for ZHNE. Hope it will close close to 2.7 today!
Eric
I'm in at 2.62 and I'm thinking this will go a lot higher based on all the cool stuff this company has going for it. Anyone care to weigh in on how high ZHNE could go? Thanks!
Eric
Zhone Technologies Introduces 10-Port Fibre Channel Card
Tuesday March 8, 7:36 am ET
Card Provides Efficient Wavelength Usage By Aggregating Up To 10 Fibre Channels
OAKLAND, Calif. & HANNOVER, Germany--(BUSINESS WIRE)--March 8, 2005--Zhone Technologies, Inc., (Nasdaq: ZHNE - News) the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, today announced the introduction of its GigaMux(TM) 6400 10-port Fibre Channel Card, GMDM10. The high density, 10-Port MultiService Multiplexer card enhances the GigaMux 6400 product, by offering support for Fibre Channel 1 & 2, FICON and Gigabit Ethernet.
Zhone's new GigaMux MultiService module is designed for the expanding storage area networking (SAN) arena, Gigabit Ethernet market, and for video-on-demand (VOD) transport applications. The new module encapsulates up to 10 Gigabit Ethernet, 8 Fibre Channel 1, 4 Fibre Channel 2 or any combination into a 10 Gigabit Wavelength. The 10-Port module supports a variety of Fibre Channel and SONET/SDH performance monitoring features. Additionally, the module will support buffer-to-buffer credits and can extend Fibre Channels up to 600 km in the future.
The new GigaMux 6400 line card, GMDM10 allows muxing up to 10 Gigabits for high bandwidth SAN applications. This allows more efficient use of optical bandwidth and wavelength by aggregating up to ten Fibre Channels, or Gigabit Ethernet signals onto a single Gbps wavelength.
Some of the key benefits include:
* Provides industry-leading aggregation capabilities of up to 10 Fibre Channels, or Gigabit Ethernet services per 10 Gbps wavelength or up to 2 services per 2.5 Gbps.
* Provides customers with investment protection by allowing support of both low and high density deployments with the same card
* Scales to support the network as new services are added
* Includes 10 client SFP ports and 1 trunk port
The GMDM10 supports 2 Gigabit Fibre channels, as well as 1 Gigabit Fibre Channels and Gigabit Ethernet. These can be used in any combination. The 10-Port Fibre Channel Card further extends Zhone GigaMux's industry leadership high bandwidth SAN applications, enabling support for newer services and end-to-end solutions.
The 10-Port MultiService GigaMux enhancements delivers greater density and operational savings. The company will feature its carrier and enterprise solutions at its CeBIT tradeshow booth in Hannover, Germany, from March 10 to March 16 (Hall 12, Booth E59).
Zhone Technologies continues to introduce products that make optical networking simple and cost-effective," commented Chris Garcia, Product Manager for Zhone. "The new-10 Port MultiService GigaMux module substantially reduces networking costs. Whether it is storage area networking, optical access, or carrier transport, Zhone Technologies has an optical networking solution optimized for each access, metro and regional application."
"Enterprise customers are looking for ways to consolidate their networks by extending DWDM beyond the SAN to incorporate all mission-critical applications and services on one infrastructure," added Garcia. "With these new features, we can deliver scalability to meet increasing capacity requirements and simultaneously support our customers' productivity levels."
About Zhone Technologies, Inc. (Zhone)
Zhone (NASDAQ: ZHNE - News) designs and manufactures network equipment for telephone companies and cable operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 service providers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technolgies to Showcase Its Market-Leading Access and Transport Solutions
Tuesday March 1, 4:16 pm ET
OAKLAND, Calif. & HANNOVER, Germany--(BUSINESS WIRE)--March 1, 2005--
Live Triple-Play Demonstrations to be Held at CeBIT Held in
Hannover, Germany - March 10th - 16th, 2005 - Zhone Stand - Hall 12,
Stand E59
WHO: Zhone Technologies, Inc.
WHAT: Preview Demonstrations of Market-Leading Triple-Play Solutions
WHEN: Thursday, March 10th through Wednesday, March 16th
WHERE: Zhone Stand - Hall 12 stand E59 - CeBIT, Hannover, Germany
Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, today announced that it will be participating at CeBIT, the world's largest IT and telecommunications event, from March 10th to 16th in Hannover, Germany.
Zhone executive, Stephen Klein, will be presenting a workshop on Triple-Play Solutions, encompassing voice, video and broadband data. The workshop will be held on Friday March 11th from 12.10 until 12.30 in the Dresden Room and on Tuesday March 15th from 13.00 until 13.20 in the Leipzig Room of the CeBIT Convention Center.
"Events like CeBIT showcase innovative IT solutions that will be successful in the coming year," indicated David Markowitz, VP Marketing and Sales of Zhone. "As an exhibitor, Zhone intends to demonstrate the next-generation solutions that will leverage the growing optical telecommunications market."
Zhone Technologies is transforming the public network, with integrated Access and Transport solutions that deliver the full spectrum of high-value services, from the customer premises to the regional core. Previews of Zhone products will be available during CeBIT at the Zhone stand - Hall 12, stand E59.
About Zhone Technologies, Inc. (Zhone)
Zhone (NASDAQ:ZHNE - News) designs and manufactures network equipment for telephone companies and cable operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 service providers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Siobhan McMullin, +1-510-777-7020
Mobile: +1-510-520-4470
smcmullin@zhone.com
Telecom Networker In The Turnaround Zhone
John Dobosz, 02.23.05, 2:23 PM ET
NEW YORK - Matt Ragas and Bill Martin, co-editors of FindProfit, recommend buying shares of Zhone Technologies.
The Oakland, Calif.-based company designs and markets communications equipment that allows network operators to deliver voice, video and data. For the year ended December 31, 2004, revenues were up 17% to $97.2 million, while Zhone's (nasdaq: ZHNE - news - people ) net loss increased by 19% to $35.6 million. Zhone's shares are down 35% in the past 12 months, but 40% higher than their 52-week low of $1.92 on Jan. 26. Based on Tuesday's close of $2.70, Zhone trades for 2.85 times sales, 1.1 times book value and 67 times expected 2005 earnings. The company's market capitalization is $255 million.
Lately, Ragas and Martin are impressed by the brisk pace at which institutional investors are buying Zhone shares, particularly the additional purchases made in recent weeks by Richard Kramlich of venture capital firm New Enterprise Associates. Also, the company turned cash flow (from operations) positive in the fourth quarter of 2004. Ragas and Martin say that 2005 revenue expectations of $119.5 million "could prove to be low if Zhone's recent momentum in its Single Line Multi Service and Optical Transport product lines accelerates as the year progresses."
Zhone was founded by Mory Ejabat, the same person who founded Ascend Communications and sold the networker to Lucent (nyse: LU - news - people ) in 1999. Zhone gained its public company status from a 2003 merger with networking hardware maker Tellium, and now competes against networking industry leader Cisco Systems (nasdaq: CSCO - news - people ), as well as Nortel Networks (nyse: NT - news - people ) and ADC Telecommunications (nasdaq: ADCT - news - people ).
"This certainly isn't a dirt cheap stock, and Zhone doesn't have a track record of knocking the lights out execution-wise, but we think our downside risk in the stock at this valuation is still fairly modest, while the upside potential over the next 12 to 18 months could be significant," says Ragas. "The company looks to be close to hitting a profitability inflection point, which should lead to increased Wall Street interest in the name, particularly given that Zhone has products in growth markets that investors are interested in, a veteran management team, and strong insider buying conviction."
With average daily volume over the past three months of 577,000 shares, Zhone shares are decently liquid, but Ragas cautions investors to "use patience and limit orders if they decide to accumulate a position," and he favors doing so on weakness. "This represents a multi-quarter investment for us that is best suited to more aggressive and higher risk accounts."
IDS Telecom Selects Zhone's Technology to Augment Voice and Data Services, Migrate from UNE-P to UNE-L
Wednesday February 23, 7:00 am ET
Zhone's Next-Generation Access Architecture Provides Cost-Effective Copper to Fiber Migration for Delivery of Triple Play Services
OAKLAND, Calif.--(BUSINESS WIRE)--Feb. 23, 2005-- Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to developing the full spectrum of next-generation local loop infrastructure solutions, today announced that IDS Telecom has selected and deployed Zhone's highly acclaimed Multi-Access Line Concentrator (MALC(TM)) for service delivery throughout its serving areas.
The MALC is a fully-featured Packet Loop Carrier (PLC) optimized for delivering voice, data, and video services over a pure packet access network. MALC allows for the flexibility to cost-effectively deliver triple play services over existing facilities today and to migrate these services on a port-by-port, service-by-service basis to a pure packet network. This migration is accomplished without disrupting subscriber service or revenue streams, giving carriers the ultimate flexibility for optimizing their networks and serving their subscribers.
Zhone's MALC and ADSL2+ line card were selected due to the flexibility they provide. MALC simplifies a carrier's network integration efforts while supporting the migration to packet networks by allowing carriers to immediately deploy using TDM circuit and ATM technology. Additionally, the MALC eases the migration to entirely IP packet access and transport as the carrier demands evolve without the need for additional hardware.
IDS Telcom was founded nearly 15 years ago in Miami and serves over 33,000 customers throughout the Southeastern United States. The company concentrates on offering alternatives to BellSouth for local, long distance and Internet services. Over 50 percent of IDS Telecom's clients are businesses based in South Florida. The company has recently implemented an aggressive plan for growth that has included adding more switches to its network and employing more sales resources.
"MALC is allowing us to migrate our customers from voice only services to voice, data and video services and allows us to support them with the same high level of quality and reliability as traditional, circuit-switched telephone networks," said Tony Petrone, Executive Vice President of IDS Telecom.
"The addition of Zhone's MALC technology in combination with IDS's strong growth and success of our data services network creates an unparalleled delivery vehicle, allowing IDS to deliver cost-effective solutions to our customers."
About IDS Telecom
IDS Telcom LLC is a leading integrated communications provider that operates within the southeastern U.S. to serve residential and small to medium-sized business customers. Since 1989, IDS has been serving customers as the leading alternative to BellSouth. IDS Telcom, with an 11% market share, offers local service on the same public service telephone network using the same equipment as BellSouth. For larger customers with more sophisticated requirements, IDS offers Voice and Data T-1s over a state-of-the-art optical fiber network. For more information please visit our website www.idstelcom.com.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for telephone companies and cable operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 service providers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Siobhan McMullin, 510-777-7020
Mobile: 510-520-4470
smcmullin@zhone.com
Zhone Introduces GigaMux 50 Optical Access Platform for Service Provider Optical Edge Applications
Tuesday February 15, 12:27 pm ET
GigaMux 50 Expands Service Providers' Abilities to Offer Fiber-based Services to Broader Numbers of Subscribers
OAKLAND, Calif.--(BUSINESS WIRE)--Feb. 15, 2005-- Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to developing the full spectrum of next-generation local loop infrastructure solutions, today announced the addition of GigaMux 50, a CWDM (coarse wavelength division multiplexing) platform, to its portfolio of optical transport products.
GigaMux 50 provides a flexible, entry-level solution for optical edge network applications and supports up to four high-bandwidth, full-duplex services on a single fiber. The GigaMux 50 platform is available to customers immediately and has already been deployed around the world by some of the world's largest service providers.
"Service providers are realizing the opportunity to extend their optical networks to thousands of new customers at the network edge, provided they can do so cost-effectively," said Chris Garcia, of Zhone Marketing. "GigaMux 50 addresses this requirement for cost-effective, low channel-count optical access. This combination has become an essential element in our customers' strategies for adding more subscribers and selling more services."
The GigaMux 50 platform provides carriers a solution that is complementary to Zhone's proven GigaMux(SM) xWDM products. GigaMux 50 enables network operators to meet the requirements of entry-level customers deploying no more than four optical services per fiber. Each service may carry up to 2.5 Gbps over distances of up to 70 kilometers. GigaMux 50 shares with the other members of the GigaMux product family the ability to both send and receive multiple voice and data streams over a single fiber.
With GigaMux 50, both carriers and their subscribers are provided with pay-as-you-grow flexibility. Preliminary installations can be used to offer existing services such as OC3, or OC12, then expand to new services, including Gigabit Ethernet or FibreChannel as needed. GigaMux 50 supports all key network protocols, including Fibre Channel, FICON, Gigabit Ethernet and ESCON, as well as SONET/SDH services.
JumpStart does not require extensive optical training or network design knowledge to deploy. GigaMux 50 is managed by Zhone's easy-to-operate GigaView Network Management System. The platform is available in a compact, one rack-unit high package that is easy to install, provision and maintain.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2005 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Siobhan McMullin, 510-777-7020, 510-520-4470 (mobile)
smcmullin@zhone.com
Zhone Technologies, Inc. Reports Fourth Quarter and Year-End 2004 Financial Results Including Continued Revenue Growth and Positive Pro Forma Earnings
Wednesday January 26, 4:35 pm ET
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 26, 2005--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, today reported its results for the fourth quarter ended December 31, 2004.
Revenue for the fourth quarter of 2004 was $28.1 million, compared with $23.3 million for the fourth quarter of 2003. Net loss for the fourth quarter of 2004, calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), was $3.8 million compared with a net loss of $6.4 million applicable to common stockholders for the fourth quarter of 2003. Pro forma Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) calculated on a non-GAAP basis was $0.5 million for the fourth quarter of 2004, compared to a pro forma EBITDA non-GAAP loss of $6.2 million for the fourth quarter of 2003. A reconciliation between net loss calculated on a GAAP basis and pro forma EBITDA on a non-GAAP basis is provided in a table immediately following the Unaudited Condensed Consolidated Statements of Operations.
Revenue for the year ended December 31, 2004 was $97.2 million, compared with $83.1 million for the year ended December 31, 2003. Net loss for the year ended December 31, 2004 calculated in accordance with GAAP was $35.6 million, compared with a net loss of $29.9 million applicable to common stockholders for year ended December 31, 2003. Pro forma EBITDA calculated on a non-GAAP basis was a loss of $11.0 million for the year ended December 31, 2004, compared to a non-GAAP pro forma EBITDA loss of $22.0 million for the year ended December 31, 2003.
"For the first time in company history, we achieved positive pro forma EBITDA for the quarter and expect to do the same for 2005," said Mory Ejabat, Chairman and Chief Executive Officer of Zhone. "We continue to see strong revenue growth from our SLMS and optical transport products and increasing interest in our triple-play, IPTV and gigabit ethernet solutions in the future."
Zhone will hold a conference call today, January 26, 2005, at approximately 2:00 p.m. Pacific Time to review its fourth quarter results. The call is open to the public by dialing 800-659-1942 for U.S. callers and 617-614-2710 for international callers and entering the passcode 68510488.
Zhone has also scheduled this event to be broadcast live via webcast. To access this webcast please go to the Investor Relations section of the Zhone website at www.zhone.com/about/investors/. A replay of the webcast will be available on the website for at least 30 days. Additional investor information can be accessed at www.zhone.com or by calling Zhone's Investor Relations Department at 510-777-7013.
SpringNet Selects Zhone's GigaMux Optical Transport Solution
Tuesday January 25, 7:00 am ET
Missouri Utility Leverages Zhone's Optical Transport Products to Quickly and Reliably Deliver New Subscriber Services Across their Network
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 25, 2005-- Zhone Technologies (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that SpringNet®, a division of City Utilities of Springfield, Missouri has selected Zhone's GigaMux Optical Transport products to provide fast, reliable access to new and emerging services across their network.
Zhone's GigaMux products allow SpringNet® to leverage its heritage as a utility company by delivering powerful networking solutions that provide exceptional service to its subscribers. SpringNet is currently using Zhone's GigaMux optical products to transport both Gigabit Ethernet and OC-48 bandwidth.
With Zhone's GigaMux product, SpringNet® is able to provide a local to global Internet service platform that has been carefully designed to address IP integration and delivers high bandwidth solutions right to our subscriber's doorsteps.
Over the years, utilities have deployed many different networking technologies including Ethernet, ATM and SONET/SDH. With today's concerted push towards IP and converged Ethernet services, Zhone's GigaMux technology allows these operators to better manage these services, offering unmatched cost-efficiency, gigabit interfacing, and ubiquitous service switching.
At the same time, utilities require massive increases in scalability and "backwards compatibility" with existing investments. It is here that Zhone's optical transport solutions, utilizing state-of-the-art DWDM technology, play a crucial role.
"Zhone's GigaMux suite of products enables large utilities like SpringNet to provide fast, reliable access to new and emerging services and technologies across their network," said Gerry Pagano, vice president of major account sales for Zhone. "Zhone's GigaMux products provide a flexible feature set that can be used to more cost effectively deliver next generation service offerings, with a combination of legacy and next-generation services."
About SpringNet®/City Utilities
SpringNet®, a division of City Utilities, is a next generation broadband service provider based in Springfield, Missouri. Our services are designed for the rapidly emerging trends of Internet business. We deliver Business to Internet access at astounding speeds of 10/100/1000 Million Bits per Second (Mbps), and Business to Business Ethernet Solutions from 1.5Mbps to 10Gbps. SpringNet employs fiber optic technology directly to your place of business, and delivers the services on standard Ethernet interfaces. For more information visit http://www.springnet.net.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for telephone companies and cable operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, FiberSLAM(TM) Optical Line Terminal, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With over one million subscriber interfaces shipped and deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice.
# ©Copyright 2005 Zhone Technologies, Inc. All rights reserved.
For more information, please visit www.zhone.com.
Zhone Introduces New VoiceFLEX Gateway Module for Scalable Circuit to Packet Voice Migration
Next-Generation Access Architecture Allows Cost-Effective Migration from Legacy TDM Voice to VoIP over Common Hardware and Management
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 20, 2005-- Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, today announced the availability of its new VoiceFLEX(TM) Voice Gateway module for its Multi-Access Line Concentrator (MALC(TM)) products. With this new feature set, the MALC enables a full array of voice, data and video services over efficient circuit or packet-based networks with TDM support for both GR-303 and V5.2, ATM support for AAL2 and ELCP, as well as Voice over IP (VoIP) support for both SIP and MGCP standards-based service implementations -- all in a single platform.
With the introduction of VoiceFLEX, Zhone's MALC can be deployed both as a remote loop carrier (RT) or Central Office Terminal (COT). As a COT, the MALC is able to aggregate traffic from multiple loop carriers and provide direct host connectivity using native GR-303 and V5.2 signaling. As a COT, the MALC with VoiceFLEX Gateway dramatically reduces the required number of expensive interface groups on the switch, providing unrivalled capacity for over 52,000 subscribers in a single 19 inch chassis measuring just 7 rack units in height.
VoiceFLEX allows carriers to maintain their existing voice infrastructure while enabling a seamless transition to a multi-service end-to-end IP network. The MALC with VoiceFLEX can be configured to deliver a range of narrowband and broadband services for residential and business subscribers including: traditional TDM POTS, Specials, T1/E1, DSL, Ethernet, and PON. With the Zhone MALC, carriers can now migrate to VoIP without impacting current services, and can readily deliver new services over existing lines.
"Zhone's MALC was created to provide carriers with a flexible and scalable cost-effective platform for their entire access network," said Jeanette Symons, CTO and Vice President, Engineering for Zhone. "By leveraging existing trunking and line facilities, while providing carrier-class VoIP support, Zhone's MALC and VoiceFLEX Gateway allows carriers to migrate to VoIP at their own pace, with no disruption to existing subscribers and no wasted investment."
The Zhone MALC can be deployed as a traditional DLC, and then, without any additional hardware, carriers can migrate their trunking and switching facilities to IP without impacting subscribers. And since the MALC is modular, carriers can elect to deploy only the access lines and trunking interfaces they need. Trunking options range from nxDS1 to OC-12/OC-48 to 10BaseT, Gigabit Ethernet and Resilient Packet Ring over Gigabit Ethernet, with the flexibility to add both lines and trunking capacity on an as-needed basis.
In serving areas with legacy TDM switches, the MALC allows TDM voice traffic to be carried over either GR-303 or V5.2 TDM trunks or over AAL2 ATM uplinks. The Zhone MALC also allows the carrier to cut over to IP on a circuit-by-circuit or location-by-location basis through simple software selection and without the need for incremental hardware.
The Zhone MALC includes advanced data and video capabilities, including full IGMP v2 multicast switching for video, VLAN support, and IP termination at the RT, with a high-performance non-blocking backplane. The MALC and VoiceFLEX have been tested for interoperability with solutions from the industry's leading feature/application server manufacturers.
As with the balance of Zhone's products, network management for the MALC and VoiceFLEX Gateway is facilitated using Zhone's graphical ZMS and ZMS-LT Management Systems. ZMS and ZMS-LT provide end-to-end management of voice, data and video services to enable simplified service provisioning. ZMS supports comprehensive Fault management, Configuration, Provisioning and Security (FCAPS) using an open interface for OSS Integration. ZMS has been OSMINE-Certified and is scalable to support multiple locations and millions of subscribers.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, FiberSLAM(TM) Optical Line Terminal, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With over one million subscriber interfaces shipped and deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2005 Zhone Technologies, Inc. All rights reserved.
For more information, please visit www.zhone.com.
Consolidated Communications Announces ''Telco TV'' Service Using Zhone's Multi-Access Line Concentrator
Tuesday January 18, 7:00 am ET
Zhone's Single-Line Multi-Service Architecture Enables Triple-Play Service Offering over Broadband Network
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 18, 2005-- Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, announced today that Consolidated Communications Inc., (Consolidated), the 15th largest telephone company in the U.S. and the largest independent telephone operator based in Illinois, has selected Zhone's Single Line Multi-Service (SLMS) architecture products for delivery of bundled voice, data and video services for its recently announced Digital Video Service (DVS).
With this new service, Consolidated's subscribers will be able to access over 200 all digital, crystal-clear channels including local programming, news and weather. In addition, Consolidated is offering over 400 hours of Movies on Demand per month including Pay Per View movies, sports events and concerts and 45 CD quality music channels. As part of the new service, subscribers can watch TV, surf the Internet & talk on the phone simultaneously using an interactive, on-screen program guide. Tailored programming can be created to block specific programming with parental controls.
Consolidated, one of the largest telephone companies in the U.S. to offer digital TV, will deliver a triple play bundle of voice, video and data services to customers in central Illinois. Based in Mattoon, Illinois, Consolidated Communications, Inc. is a family of companies managing more than 250,000 customer access lines throughout Illinois and Texas.
To deliver this innovative Digital Video Services package, Consolidated has selected Zhone's Multi-Access Line Concentrator (MALC(TM)) packet loop carrier.
As the industry's first next-generation, high-density multi-access line concentrator, the MALC has been specifically designed to support both traditional narrowband voice and broadband voice, data and video services in a single platform, capable of delivering these bundled services to any subscriber over a single copper or fiber access line. Zhone's MALC allows carriers to deploy using today's TDM circuit technology while simultaneously enabling video, data and VoIP services with an elegant migration to a converged pure packet system -- all without incremental hardware.
The MALC product family offers flexibility with a broad range of configuration options while maintaining common management, integrated cross-connect, integrated loop qualification with internal splitters, and flow-through provisioning capabilities to clearly differentiate the platform from traditional NGDLC platforms.
"As a company that's been in business for over 100 years, we realize the importance of basing all of our services on high-performance, highly reliable service platforms," said Tom White, Director Network Engineering for Consolidated. "Before introducing broadcast TV service for the first time, we looked hard at our choices for video technology; and after extensive evaluation of alternatives, we chose Zhone's Single Line Multi-Service architecture as the key element for our broadband and digital TV service delivery. The Zhone access architecture provides us with a proven carrier-class platform with flexibility for pure packet converged service delivery."
"Zhone's triple play voice/data/video products uniquely allow carriers to deliver the diversity of services required to compete while reducing deployment and operations costs," said Michael Fischer, vice president of U.S. sales for Zhone.
About Consolidated Communications
Founded in 1894, Consolidated Communications, Inc. provides communications services to both business and residential customers including local and long distance, Internet, business systems, retail and wholesale operator services, public services and fully integrated telemarketing and fulfillment services. For more information on Consolidated Communications, visit www.consolidated.com.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, FiberSLAM(TM) Optical Line Terminal, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With over one million subscriber interfaces shipped and deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2005 Zhone Technologies, Inc. All rights reserved.
For more information, please visit www.zhone.com.
Contact:
Zhone Technologies, Inc.
Investors, 510-777-7013
investor-relations@zhone.com
Jessica Mullens, 510-777-7020 (Media)
public-relations@zhone.com
Source: Zhone Technologies, Inc.
Zhone Announces FiberSLAM Comprehensive Passive Optical Network Product Supporting Full-Featured Triple Play Solutions
Wednesday January 12, 7:00 am ET
Complete Product Suite Provides Support for Fiber Last Mile Infrastructure
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 12, 2005-- Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to developing the full spectrum of next-generation local loop infrastructure solutions, today announced its new FiberSLAM(TM) Optical Line Terminal. FiberSLAM is a comprehensive suite of products that allow network operators to deliver revenue generating voice, data, video and entertainment services to their subscribers over fiber access lines.
As part of Zhone's Single Line Multi-Service (SLMS) architecture, FiberSLAM is the latest addition to Zhone's complete, end-to-end solution that allows telephone carriers to deliver the triple-play of voice, data and video services to their subscribers over a single network. SLMS has proven cost effective for carriers worldwide and encompasses any deployment scenario, whether greenfield networks, migration from old copper plant or an overlay.
FiberSLAM(TM) Optical Line Terminal (OLT)
FiberSLAM enables new high bandwidth optical services to the home or business using Zhone's acclaimed Single-Line Multi-Service (SLMS) architecture. Designed for CO, RT, outdoor cabinet or basement deployment, the FiberSLAM delivers both traditional and next generation applications including legacy voice, high speed data and analog or digital video and interactive applications.
With the introduction of its PON solution, Zhone is expanding on its protocol and media agnostic vision with a broad range of either IP or ATM uplinks including OC-3, STM-1, OC-12, STM-4 and GigE. In addition to PON and DSL services, Zhone's SLMS architecture supports the industry's broadest array of narrowband and special services available, and all on common platforms and cabinets.
Zhone Residential Gateway -- ZRG 800
To complete the solution, Zhone's innovative PON Residential Gateway serves as the ONT/ONU for connections directly to residential subscribers. The Zhone Residential Gateway (ZRG) combines the functions of a modem, router and Integrated Access Device in a single unit that resides either indoors at the customer premises or outdoors at the subscriber demarc. From a single fiber input, the Zhone ZRG delivers POTS voice, fast Ethernet and either IP or RF video over the subscribers existing home wiring. Zhone's solution lowers deployment costs while enhancing the subscriber's experience by eliminating set top boxes and utilizing existing TVs, peripherals and electronic devices. This facilitates rapid installation and eliminates the need for rewiring the home.
"The addition of FiberSLAM to Zhone's product family allows carriers to deliver triple-play services over rapidly adopted fiber access build-outs," said Jeanette Symons, chief technology officer and vice president of engineering for Zhone. "This all fiber solution allows service providers to immediately compete with the most advanced bundled triple-play services while simultaneously reducing operations costs."
In the carrier network, Zhone's Single Line Multi-Service product family utilizes the carriers existing copper wiring while providing an elegant migration to new fiber deployments using common hardware and a common management system. This media agnostic approach allows the carrier to use existing copper loops and outside plant facilitates for rapid deployment while progressively evolving to a fiber based build-out. This managed migration to fiber ensures sustained revenue while stemming the erosion of the carriers' customer base to competitors.
Whether over copper or fiber, network, subscribers and services are all managed with the Zhone Management System (ZMS) -- a common flow-through provisioning and management platform that integrates into existing OSS systems. Zhone's ZMS management system has been OSMINE certified.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With over one million subscriber interfaces shipped and deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2005 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies
Investors, 510-777-7013
investor-relations@zhone.com
Jessica Mullens, 510-777-7020 (Media)
public-relations@zhone.com
www.zhone.com
Etisalat Successfully Deploys Zhone's MALC and Raptor Products to Expand Its ADSL Internet Services
Tuesday January 11, 7:00 am ET
Zhone's Single-Line Multi-Service Architecture Allows Major Carrier to Cap Investment in Legacy While Migrating to Packet
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 11, 2005-- Zhone Technologies, Inc. (NASDAQ:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that Emirates Telecommunications Corporation (Etisalat) has selected Zhone's innovative Single Line Multi-Service (SLMS) architecture to cost effectively expand its network. Etisalat has selected Zhone Raptor 100 for outdoor cabinet expansion with ADSL services reaching out to a new slice of customers in remote areas. This expansion supports the company's comprehensive multi-service DSL end-to-end solution across the United Arab Emirates.
In addition, Etisalat is utilizing Zhone's Access Optimizer technology with E1 Circuit Emulation line cards. This allows Etisalat to uplink both narrowband and broadband traffic from the Raptor 100 DSLAMs as well as from their existing DLC, NGDLC and DSLAM equipment onto a common Zhone network.
By subtending chassis, the Access Optimizer allows Etisalat to place equipment closer to the subscriber to address both bandwidth and reach. This subtending capability also allows for more cost-effective network builds by deploying just the right port count that a market requires. In combination with the broadest range of port densities, chassis sizes and both locally-powered and line-powered configurations, Raptor allows Etisalat to deploy the most cost-effective multi-service infrastructure networks available.
The Access Optimizer is being used not only for subtending Zhone chassis, but also for subtending traffic from other vendor's legacy NGDLCs and DSLAMs. By utilizing Access Optimizer technology, Etisalat is able to "cap-and-grow" their investment in legacy platforms without service disruption. New service ports can be deployed in the MALC rather than in the legacy platform, providing for more cost effective port deployments and for more services than are available on the legacy devices.
As the industry's first next-generation, high-density multi-access line concentrator, the MALC has been specifically designed to support both traditional narrowband voice and broadband data services in a single platform, delivering any service to any subscriber over a single common infrastructure. Zhone's Raptor extends the architecture by providing the broadest array of DSL densities and form factors on the market. The combination allows carriers to deploy using today's leading TDM circuit technology while simultaneously preparing for cell or IP packet migration without incremental hardware.
The MALC product family offers flexibility with a broad range of configuration options while maintaining common management, integrated cross-connect, integrated loop qualification with internal splitters, and flow-through provisioning capabilities to clearly differentiate the platform from traditional NGDLC platforms.
About Etisalat
Emirates Telecommunications Corporation (Etisalat) came into being on 30th August 1976. The Corporation provides telecommunication services to the United Arab Emirates and is one of the leading service providers in the Middle East Region. Etisalat also provides digital cable television and multimedia services to the residents of the United Arab Emirates under E-vision, a wholly owned subsidiary of Etisalat. E-vision provides the ultimate choice in Digital Entertainment, Programming, Interactive Audio/Video and Pay Per View Services.
Further information is available at http://www.etisalat.co.ae.
About Zhone Technologies, Inc. (Zhone)
Zhone (NASDAQ:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With over one million subscriber interfaces shipped and deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright © 2005 Zhone Technologies, Inc. All rights reserved.
For more information, please visit www.zhone.com.
Zhone Announces Over One Million Subscriber Interfaces Shipped
Wednesday January 5, 7:00 am ET
MALC and Raptor Shipments Exceed Over 3000 Units to Growing List of Global Service Provider Customers With Capacity for Over One Million FTTP or DSL Subscribers
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 5, 2005-- Zhone Technologies, Inc., the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that it has shipped platform capacity supporting over one million broadband subscribers to carriers worldwide. Each service slot in the compact, packet-based MALC and Raptor packet loop carrier (PLC) supports up to 32 FTTP or 48 ADSL2+ subscriber terminations. With over 3,000 MALC and Raptor platforms shipped and over a quarter-million active ports in service, this deployment footprint represents capacity for over one million subscriber terminations.
"Zhone continues to demonstrate accelerating market penetration with its MALC and Raptor products," stated Teresa Mastrangelo, Program Director for the Global Broadband Access program at RHK. "Access remains the largest impediment to deliver of new broadband services and DSL continues to gain strength as the dominant broadband access technology. With their MALC and Raptor products, Zhone is addressing the need for flexible, broadband solutions that scale to deliver high bandwidth applications."
In addition to providing carriers with the ability to deliver IPTV, VoIP and Triple Play services, Zhone's MALC and Raptor offer the greatest flexibility and density of any platform on the market with support for up to 960 ADSL2+ ports in a 7U chassis. With options for integrated metallic test, POTS ports and splitters, MALC simplifies network integration efforts while delivering downstream data rate services up to 24 Mbps and upstream data rates ranging up to 3 Mbps over existing copper loops.
The MALC is also fully NEBS level 3 and GR-487 compliant to provide reliable service in a wide range of applications -- from the rigorously controlled environments of RBOC COs, to remote terminals and extreme climates ranging from North Dakota to North Africa. Only Zhone's MALC and Raptor products offer the diverse port counts, form factors and environmental protections needed to provide universal broadband delivery.
This flexibility allows carriers to minimize loop lengths and provide precisely the right sized DSL platform for every demographic requirement. Subscribers beyond the standard serving area benefit from extended reach capabilities while carriers create new revenue opportunities with new broadband subscribers and deliver new bundled services including switched digital video.
In addition to support for both high-bandwidth copper and fiber access lines, MALC also supports integrated transport using Gigabit Ethernet and Resilient Packet Ring (RPR) technology. RPR provides many of the characteristics found in conventional SONET networks including QOS, sub-50 ms protection switching and simplified provisioning. However, unlike SONET, RPR allows carriers to efficiently and cost-effectively handle both TDM and packet traffic including multicast and broadcast video traffic.
As the industry's first next-generation, high-density packet loop concentrator, the MALC has been specifically designed to support transport and distribution of voice, data and video services in a single platform. The MALC uniquely facilitates the migration to packet networks by allowing carriers to deploy today using TDM circuit and ATM technology and migrate to entirely IP packet access and transport as their needs and networks dictate without incremental hardware.
Zhone Technologies to Present at Needham Conference
Tuesday January 4, 7:00 am ET
OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 4, 2005--Zhone Technologies (Nasdaq:ZHNE - News) will be presenting at the Seventh Annual Needham & Company Growth Conference in New York City.
Zhone's audio only presentation will be broadcast live via the Internet on Wednesday, January 12 at approximately 2:00 p.m. PT. Interested listeners can access the live audio presentation via the Zhone Investor Relations Web site at http://www.zhone.com/about/investors/index.html
For those unable to listen to the live audio Webcast, a replay of the presentation will be available online for approximately 72 hours after the presentation at http://www.zhone.com/about/investors/index.html
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. © Copyright 2005 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
jmullens@zhone.com
Investors, 510-777-7013
investor-relations@zhone.com
Source: Zhone Technologies
Form 10-Q for ZHONE TECHNOLOGIES INC
12-Nov-2004
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this report. In addition to historical information, this report contains forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. We use words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "should", "will", "would" and similar expressions to identify forward-looking statements. Factors that might cause such a difference include, but are not limited to, our ability to obtain additional capital to fund our existing and future operations, the rate of product purchases by current and prospective customers, general economic conditions, conditions specific to the telecommunications and related industries, new product introductions and enhancements by us and our competitors, competition, manufacturing and sourcing risks. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Readers are referred to risks and uncertainties identified below, under "Risk Factors" and elsewhere herein. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
OVERVIEW
We were founded in 1999 to offer network service providers a simplified, comprehensive architectural approach to delivering services over their access networks.
We have developed hardware and software that simplify the way network service providers deliver communication services to their subscribers. Our Single Line Multi-Service Architecture, or SLMS ™, is a simplified network architecture that provides broadband and narrowband services over a scalable next-generation local-loop infrastructure. SLMS is designed to extend the speed, reliability and cost-efficiencies currently achieved in the core of the communications network to business and consumer subscribers. Our products enable service providers to use their existing networks to deliver voice, data, video, and entertainment services to their customers. We have designed our products to interoperate with different types of wiring and equipment already deployed in service providers' networks.
Our Zhone Management System, or ZMS ™, provides the software tools necessary to manage all of the products, services and subscribers in a SLMS network. ZMS is a single management tool that enables network service providers to allow instant delivery and upgrade of network services. In addition, ZMS is capable of interfacing with and managing other vendors equipment already deployed in service providers' networks.
Our revenue consists of three product categories: SLMS, Legacy and Service, and Optical Transport. SLMS consists of our next generation, internally developed products. Legacy and Service is comprised of legacy product lines acquired in acquisitions, including the former MUX and DLC product categories and one legacy product line acquired from Sorrento, as well as service revenue. Optical Transport consists of the majority of the product lines acquired from Sorrento.
We believe that we have assembled the employee base, technological breadth and market presence to provide a simple yet comprehensive set of solutions to the complex problems encountered by network service providers when delivering communications services to subscribers.
Since inception, we have incurred significant operating losses and have an accumulated deficit of $627.6 million at September 30, 2004. The global telecommunications market has deteriorated significantly over the last several years. Many of our customers and potential customers have reduced their capital spending during this period and many others have ceased operations. Additional capital spending reductions have continued due to continued uncertainties regarding the state of the global economy, network overcapacity, customer bankruptcies, network build-out delays and limited capital availability. In response to the challenging environment, we have taken the actions that we believe are necessary for our future success. In particular, we have significantly reduced our operating costs through workforce reductions and careful cost controls. We have also taken significant write-downs of inventory, intangible assets and property and equipment. Due to our restructuring activities and careful expense controls, our net loss decreased from $108.6 million in 2002 to $17.2 million in 2003. For the nine months ended September 30, 2004, our net loss was $31.8 million. We do not expect any significant reductions in our overall workforce for at least through the period ending December 2004.
Going forward, our key objectives include the following:
• Increasing revenue while continuing to carefully control costs;
• Continued investments in strategic research and product development activities that will provide the maximum potential return on investment;
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• Minimizing consumption of our cash and short-term investments; and
• Analyzing and pursuing strategic acquisitions that will allow us to expand our customer, technology and/or revenue base.
Basis of Presentation
In November 2003, we consummated our merger with Tellium. Tellium was the surviving entity under corporate law and following the merger its name was changed to Zhone Technologies, Inc. However, due to various factors, including the relative voting rights, board control, and senior management composition of the combined company, the transaction was treated as a reverse merger for accounting purposes, and Zhone was treated as the "acquirer". As a result, the financial statements of the combined company after the merger reflect the financial results of Zhone on a historical basis after giving effect to the merger exchange ratio to historical share-related data. The results of operations for Tellium were included in the combined company's results of operations from the effective date of the merger.
In July 2002, in conjunction with our equity restructuring, our Board of Directors approved a reverse stock split of our common stock at a ratio of one-for-ten (the "Reverse Split"), causing each outstanding share of common stock to convert automatically into one-tenth of a share of common stock. As a result of the merger with Tellium, stockholders of Zhone prior to the merger received 0.47 of a share of Tellium common stock for each outstanding share of Zhone common stock, following the conversion of all outstanding shares of our preferred stock into common stock.
Stockholders' equity has been restated to give retroactive recognition to the Reverse Split and the effect of the Tellium merger for all periods presented by reclassifying the excess par value resulting from the reduced number of shares from common stock to paid-in capital. All references to preferred share, common share and per common share amounts for all periods presented have been retroactively restated to reflect the Reverse Split and the effect of the Tellium merger.
In October 2003, in response to an inquiry from the SEC, we restated our consolidated financial statements and related disclosures for the year ended December 31, 2002 and for the quarters ended June 30, 2003 and March 31, 2003. All information, discussions and comparisons in this report reflect the restatement. The restatement reflected increased non-cash stock-based compensation expense resulting from a change in the estimated fair value of our common stock from $0.21 per share to $3.19 per share. We also adjusted the Series AA redeemable preferred stock to reflect a decrease in the estimated fair value from $170.7 million to $126.5 million, or $5.81 per share to $4.31 per share as of July 1, 2002.
Acquisitions
As of September 30, 2004, we had completed eleven acquisitions of complementary companies, products or technologies to supplement our internal growth. To date, we have generated a significant amount of our revenue from sales of products obtained through acquisitions.
We are likely to acquire additional businesses, products and technologies in the future. If we complete additional acquisitions in the future, we could consume cash, incur substantial additional debt and other liabilities, incur amortization expenses related to acquired intangible assets or incur large write-offs related to impairment of goodwill and long-lived assets. In addition, future acquisitions may have a significant impact on our short term results of operations, materially impacting revenues or expenses and making period to period comparisons of our results of operations less meaningful.
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Critical Accounting Policies and Estimates
Management's discussion and analysis of its financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. The policies discussed below are considered by management to be critical because changes in such estimates can materially affect the amount of our reported net income or loss. For all of these policies, management cautions that actual results may differ materially from these estimates under different assumptions or conditions.
Revenue Recognition
We recognize revenue when the earnings process is complete. We recognize product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment, under normal credit terms, or under sales-type leases, net of estimated sales returns and allowances at the time of shipment. Revenue is deferred if there are significant post-delivery obligations, if collection is not considered reasonably assured at the time of sale, or if the fees are not fixed or determinable. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. Our arrangements generally do not have any significant post delivery obligations. We offer products and services such as support, education and training, hardware upgrades and extended warranty coverage. For multiple element revenue arrangements, we establish the fair value of these products and services based primarily on sales prices when the products and services are sold separately. When collectibility is not reasonably assured, revenue is recognized when cash is collected. Revenue from education services and support services is recognized over the contract term or as the service is performed. We make certain sales to product distributors. These customers are given certain privileges to return a portion of inventory. We recognize revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors, unless there is sufficient customer specific sales and sales return history to support revenue recognition upon shipment. Revenue from sales of software products is recognized provided that a purchase order has been received, the software has been shipped, collection of the resulting receivable is probable, and the amount of the related fees is fixed or determinable. To date, revenue from software transactions and sales-type leases has not been significant. We accrue for warranty costs, sales returns, and other allowances at the time of shipment based on historical experience and expected future costs. In the event that our actual costs and sales returns exceeded our estimates, our revenue and gross margins would be adversely affected.
Allowances for Sales Returns and Doubtful Accounts
We record an allowance for sales returns for estimated future product returns related to current period product revenue. The allowance for sales returns is recorded as a reduction of revenue and an allowance against our accounts receivable. We base our allowance for sales returns on periodic assessments of historical trends in product return rates and current approved returned products. If the actual future returns were to deviate from the historical data on which the reserve had been established, our future revenue could be adversely affected.
We record an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments for amounts owed to us. We base our allowance on periodic assessments of our customers' liquidity and financial condition through analysis of information obtained from credit rating agencies, financial statement reviews, and historical collection trends. Additional allowances may be required in the future if the liquidity or financial condition of our customers were to deteriorate, resulting in an impairment in their ability to make payments.
Valuation of Long-Lived Assets, including Goodwill and Other Acquisition-Related Intangible Assets
Our long-lived assets consist primarily of goodwill, other acquisition-related intangible assets and property and equipment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such events or circumstances include, but are not limited to, a significant decrease in the benefits realized from the acquired business, difficulty and delays in integrating the business, or a significant change in the operations of the acquired business or use of an asset. Goodwill and other acquisition-related intangible assets not subject to amortization are tested annually for impairment using a two-step approach, and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset's fair value.
We estimate the fair value of our long-lived assets based on a combination of the market, income and replacement cost approaches. In the application of the impairment testing, we are required to make estimates of future operating trends and resulting cash flows and judgments on discount rates and other variables. Actual future results and other assumed variables could differ from these estimates.
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As of September 30, 2004 we have $157.8 million of goodwill, $20.7 million of other acquisition-related intangible assets and $23.2 million of property and equipment. Other acquisition-related intangible assets are comprised mainly of purchased developed technology and customer relationships. Many of the entities acquired by us do not have significant tangible assets; as a result, a significant portion of the purchase price is typically allocated to intangible assets and goodwill. Our future operating performance will be impacted by the future amortization of intangible assets, potential charges related to purchased in-process research and development for future acquisitions, and potential impairment charges related to goodwill. Accordingly, the allocation of the purchase price of the acquired companies to intangible assets and goodwill has a significant impact on our future operating results. The allocation process requires management to make significant estimates and assumptions, including estimates of future cash flows expected to be generated by the acquired assets and the appropriate discount rate for these cash flows. Should different conditions prevail, we would have to perform an impairment review that might result in material write-downs of intangible assets and/or goodwill. Other factors we consider important which could trigger an impairment review, include, but are not limited to, significant changes in the manner of use of our acquired assets, significant changes in the strategy for our overall business or significant negative economic trends. If this evaluation indicates that the value of an intangible asset or long-lived asset may be impaired, an assessment of the recoverability of the net carrying value of the asset over its remaining useful life is made. If this assessment indicates that the cost of an intangible asset or long-lived asset is not recoverable, based on the estimated undiscounted future cash flows or other comparable market valuations of the entity or technology acquired over the remaining amortization or depreciation period, the net carrying value of the related intangible asset or long-lived asset will be reduced to fair value and the remaining amortization or depreciation period may be adjusted. For example, we recorded significant impairment charges during 2001, including $41.7 million related to goodwill and other acquired intangibles. In addition, in the fourth quarter of 2002, we recorded approximately $50.8 million of impairment in property, plant and equipment and other assets. Due to uncertain market conditions and potential changes in our strategy and product portfolio, it is possible that forecasts used to support our intangible assets may change in the future, which could result in additional non-cash charges that would adversely affect our results of operations and financial condition.
Table of Contents
RESULTS OF OPERATIONS
We list in the tables below the historical condensed consolidated statement of
operations data as a percentage of revenue for the periods indicated.
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ---------------------
2004 2003 2004 2003
------- ------- ------- ----
Net revenue 100 % 100 % 100 % 100 %
Cost of revenue 58 % 55 % 57 % 55 %
------- ---- ------- -- ------- ---- ---- --
Gross profit 42 % 45 % 43 % 45 %
Operating expenses:
Research and product development 21 % 25 % 25 % 26 %
Sales and marketing 25 % 20 % 24 % 22 %
General and administrative 13 % 5 % 13 % 5 %
Purchased in-process research and
development 9 % 0 % 12 % 0 %
Litigation settlement 0 % 7 % 0 % 3 %
Stock-based compensation 1 % 4 % 2 % (1 )%
Amortization and impairment of intangible
assets 11 % 9 % 11 % 10 %
------- ---- ------- -- ------- ---- ---- --
Total operating expenses 80 % 70 % 87 % 65 %
------- ---- ------- -- ------- ---- ---- --
Operating loss (38 )% (25 )% (44 )% (20 )%
Other income (expense), net (3 )% (4 )% (2 )% (3 )%
------- ---- ------- -- ------- ---- ---- --
Loss before income taxes (41 )% (29 )% (46 )% (23 )%
Income tax (benefit) provision 0 % ( 14 )% 0 % ( 5 )%
------- ---- ------- -- ------- ---- ---- --
Net loss (41 )% (15 )% (46 )% (18 )%
------- ---- ------- -- ------- ---- ---- --
Table of Contents
Revenue
Information about our revenue for products and services for the three and nine
months ended September 30, 2004 and 2003 is summarized below (in millions):
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------- -----------------------------------------
Increase Increase
2004 2003 (Decrease) % change 2004 2003 (Decrease) % change
------ ------ ------------ -------- ------ ------ ------------ --------
Products $ 24.5 $ 20.0 $ 4.5 22 % $ 63.0 $ 54.0 $ 9.0 17 %
Services 2.5 2.2 0.3 16 % 6.1 5.9 0.2 4 %
- ---- - ---- --- -------- - ---- - ---- --- --------
Total $ 27.0 $ 22.2 $ 4.8 21 % $ 69.1 $ 59.9 $ 9.2 15 %
- ---- - ---- --- -------- - ---- - ---- --- --------
Information about our revenue for North America and International markets for the three and nine months ended September 30, 2004 and 2003 is summarized below (in millions):
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------------------ ------------------------------------------
Increase Increase
2004 2003 (Decrease) % change 2004 2003 (Decrease) % change
------ ------ ----------- -------- ------ ------ ----------- --------
North America $ 19.3 $ 20.4 $ (1.1 ) (5 )% $ 54.2 $ 54.8 $ (0.6 ) (1 )%
International 7.7 1.8 5.9 321 % 14.9 5.1 9.8 195 %
- ---- - ---- -- -------- - - ---- - ---- -- -------- -
Total $ 27.0 $ 22.2 $ 4.8 21 % $ 69.1 $ 59.9 $ 9.2 15 %
- ---- - ---- -- -------- - - ---- - ---- -- -------- -
Information about our revenue by product line for the three and nine months ended September 30, 2004 and 2003 is summarized below (in millions):
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------------------ ------------------------------------------
Increase Increase
2004 2003 (Decrease) % change 2004 2003 (Decrease) % change
------ ------ ----------- -------- ------ ------ ----------- --------
SLMS $ 5.6 $ 4.4 $ 1.2 26 % $ 19.6 $ 14.4 $ 5.2 36 %
Legacy and Service 17.2 17.8 (0.6 ) (3 )% 45.3 45.5 (0.2 ) (<1 )%
Optical Transport 4.2 0.0 4.2 N/M 4.2 0.0 4.2 N/M
- ---- - ---- -- -------- - - ---- - ---- -- -------- -
$ 27.0 $ 22.2 $ 4.8 21 % $ 69.1 $ 59.9 $ 9.2 15 %
- ---- - ---- -- -------- - - ---- - ---- -- -------- -
For the three months ended September 30, 2004, revenue increased 21% or $4.8 million to $27.0 million from $22.2 million for the same period last year. For the nine months ended September 30, 2004, revenue increased 15% or $9.2 million to $69.1 million from $59.9 million for the same period last year. The increases were primarily due to stabilizing demand for our products compared to the same periods last year, and incremental revenue relating to the acquisition of Sorrento during the three months ended September 30, 2004.
Product revenue accounted for the majority of the total increase in revenue in each period, while service revenue increased modestly in each period. Revenue from international customers increased significantly in both periods of the current year, while revenue from North American customers declined modestly in each period. International revenue represented 29% and 22% of total revenue for the three and nine months ended September 30, 2004, respectively, as compared to 8% of revenue for both the three and nine months ended September 30, 2003. The significant increase in international revenue in each period reflects the increasing opportunity for our next generation products in greenfield deployments at international carriers, whereas the North American market is more mature and currently consists primarily of sales of legacy type products and services.
Revenue for our SLMS product family increased by $1.2 million, or 26% for the three months ended September 30, 2004 and by $5.2 million, or 36% for the nine months ended September 30, 2004 as compared to the same periods last year, respectively. Revenue for our Legacy and Service product family, which includes the former MUX and DLC product categories, decreased by $0.6 million, or 3% in the three months ended September 30, 2004 and $0.2 million, or less than 1% in the nine months ended September 30, 2004 as compared to the same periods last year, respectively. Revenue for our Optical Transport product family was $4.2 million for the three and nine months ended September 30, 2004. There was no Optical Transport product family revenue for either period in the prior year.
Lakefield Telephone Selects Zhone for New Service Delivery
Tuesday November 2, 7:00 am ET
Next-Generation Access Architecture Allows Packet Migration for Cost-Effective Delivery of Triple-Play Services
OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 2, 2004--Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that Lakefield Telephone has selected and deployed Zhone's Multi-Access Line Concentrator (MALC(TM)) system for it's new service deployments.
Lakefield has begun deploying Zhone's MALC with 48 port ADSL2+ line cards as its broadband service platform to their current subscribers over existing copper facilities. Zhone's ADSL2+ line card greatly simplifies a carriers network integration efforts by delivering downstream data rate services up to 24 Mbps and upstream data rates ranging up to 3 Mbps. Subscribers beyond the standard serving area also benefit from extended reach capabilities creating new revenue opportunities as carriers capture new broadband subscribers and deliver new bundled services including switched digital video.
"Zhone's high-density 48-port ADSL2+ card allows Lakefield to be well positioned both today and for the future," said Philip Nass, General Manager of Lakefield Telephone. "Using this technology, Lakefield is now providing greater bandwidth and additional reach to our current data customers while preparing for next-generation voice and video services with network reliability, security and intelligence."
Additional bandwidth and reach is achieved while simultaneously preserving investment in previous ADSL CPE already deployed. By simultaneously addressing the need for bandwidth, reach and interoperability, Zhone is enabling operators to more cost effectively provide and deploy cost-effective multi-service networks.
"As part of Zhone's multi-service architecture, the MALC allows carriers to lower costs over the existing local loop infrastructure by migrating to packet based access and transport while adding incremental revenue through converged triple play services," said Michael Fischer, vice president of North American Sales for Zhone.
With support for up to 960 ADSL2+ ports in a 7U chassis, Zhone's MALC offers the most cost effective and highest density concentration of any broadband platform on the market. Additionally, Zhone offers the broadest array of form factors and port counts so that carriers can minimize loop lengths and provide precisely the right sized DSL platform for every demographic.
Additional capabilities include subtending, local or line-powered options and optional waterproof enclosures for pole mounting and outdoor deployments. These capabilities ensure carriers with the most cost-effective deployment options and the shortest possible loop lengths -- important considerations for deploying bandwidth hungry advanced applications like VoIP and video. In addition, MALC supports both copper and fiber access lines, integrated transport using GigE and Resilient Packet Rings (RPR), and legacy line side services including narrowband services including POTS and legacy specials.
About Lakefield Telephone Company (Lakefield)
Lakefield, a locally owned company, has been providing local telephone service in the Newton/Newtonburg areas of Wisconsin for over 90 years. As a communications leader in Manitowoc County, Lakefield is continually expanding its service offerings to keep pace with the evolving telecommunications industry and to offer its customers the latest in technology and service. Since November of 2001, Lakefield has been offering Verizon (GTE) customers in Two Rivers a choice for their local telephone service, long distance and broadband. For more information, please visit http://www.lakefield.net.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
Contact:
Zhone Technologies, Inc.
Investors, 510-777-7013
investor-relations@zhone.com
Jessica Mullens, 510-777-7020 (Media)
jmullens@zhone.com
Source: Zhone Technologies, Inc.
Zhone Technologies Ranked Number 151 Fastest Growing Technology Company in North America on the 2003 Deloitte Technology Fast 500
Wednesday October 20, 8:00 am ET
Zhone Attributes Its 1,491 Percent Revenue Growth to Adoption of Its Network Architecture for Delivering Converged Voice, Data and Video Services
OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 20, 2004-- Zhone Technologies, Inc. (Nasdaq:ZHNE - News), the first company dedicated to developing the full spectrum of next-generation local loop infrastructure solutions, today announced that it has been identified among the Deloitte Technology Fast 500, which recognizes the Fastest Growing Technology Companies in the United States and Canada.
Zhone's Chairman and CEO, Mory Ejabat credits delivering an elegant solution that precisely addresses today's telecommunications industry needs as instrumental to Zhone's revenue growth over the past five years.
"Zhone's multi-service delivery architecture has been propelled by the growing demand from carriers to deliver cost-effective voice, data and video services," said Mr. Ejabat. "Zhone has been busily developing solutions for the past five years in anticipation of the carrier demand that we are now seeing across the globe and in every geography we serve."
"Growing the top line enough to make the Deloitte Technology Fast 500 is especially meaningful in light of the pressure under which the telecommunications industry has operated over the past five years," said Mark A. Evans, national managing partner of Deloitte's Technology, Media and Telecommunications Group. "We congratulate Zhone on becoming one of the fastest growing companies in North America."
The Technology Fast 500 is a ranking of the fastest growing technology companies in North America based on percentage fiscal year revenue growth over five years (1999-2003) by Deloitte & Touche, LLP. The list is the result of research on technology companies. Sources for public and private companies that make the list include public company databases, Deloitte's 19 regional Technology Fast 50 programs in North America and direct nominations. To qualify for the Fast 500, entrants must have had 1999 operating revenues of at least $50,000 USD and $75,000 CD for the United States and Canada respectively; and 2003 operating revenues must be at least $1 million USD or CD.
This year marks the tenth anniversary of Deloitte's Technology Fast 500.
About Zhone Technologies, Inc. (Zhone)
Zhone (Nasdaq:ZHNE - News) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu," or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.
Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu. In the U.S., services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP.
Contact:
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
jmullens@zhone.com
510-777-7013 (Investors)
investor-relations@zhone.com
Source: Zhone Technologies, Inc.
Zhone Technologies Selected by SANNET for Network in Japan
Zhone Expands Japanese Presence with the Addition of a 640 km Backbone
OAKLAND, Calif.--(BUSINESS WIRE)--Aug. 24, 2004--Zhone Technologies, Inc., the first company dedicated to building total-delivery solutions for voice, data and video services worldwide, announced today the deployment of a new backbone for NTT DATA SANYO CORPORATION, SANNET Business Division, a leading service provider in Japan.
The SANNET ISP backbone network represents Zhone's largest network deployed to date in Japan, spanning over 600 km and connecting three major cities -- Tokyo, Nagoya and Osaka. The network provides new 2.5G Gigabit Ethernet services to over 15 cities between Tokyo and Osaka. This expanded reach into new customer markets positions SANNET for increased revenue opportunities.
Zhone's continued expansion in Japan has been facilitated through strategic partnership with NTT DATA SANYO SYSTEM CORPORATION, one of Japan's leading service integrators. NTT DATA SANYO selected Zhone Technologies for building the SANNET ISP backbone project, primarily due to Zhone's ability to offer a flexible, cost-effective platform with industry leading Gigabit Ethernet multiplexing technology.
Zhone's 4-port Gigabit Ethernet product, which has been deployed in SANNET, offers the most advanced technology in a compact, cost-effective package. This includes: provisioning of fractional Gigabit Ethernet services, jumbo frame support, end-to-end flow control, 1200 km port support and extended Ethernet port statistics which allows for in depth performance monitoring.
"We are honored to have been selected by SANNET for such an extensive and critical project," said Darin Clause, Zhone's Vice President of Storage Area Network Markets at Zhone Technology. "Our Gigabit Ethernet product was designed to be the most progressive and advantageous to our customers. We are pleased to have SANNET as a customer and look forward to a long standing relationship with them," added Clause.
"Zhone's Gigabit Ethernet technology and robust SAN products will enable us to maximize customer investments and help us drive down capital and operating costs," replied Mr. Masahiko Matsumoto, senior staff of NTT DATA SANYO CORPORATION, SANNET Business Division. "Their solution was simple and cost-effective. We would not hesitate to work with Zhone in future projects," added Mr. Matsumoto.
Marubeni Network Systems (MNET), a Zhone partner in Storage Area Networking, successfully implemented this deployment.
About Marubeni Network Systems
MNET was established in 1997 and is a subsidiary of Marubeni Corp. and NCR-Japan. Marubeni Corp. is 81 percent shareholder-owned and NCR-Japan owns 19 percent. With the strong background and support of Marubeni, the company has accumulated considerable project management experience and expertise in overseas and domestic projects. No single company can match the influential links that MNET has established with the telecommunications industry, relationships cemented by more than four decades in the industry. This 40-year experience gives MNET unique access to firms, stations, cable connections and the entire array of linkages that make the telecommunications industry. Further information on MNET can be found at http://www.marubeni-net.com.
About NTT DATA SANYO Corporation's SANNET Business Division (SANNET)
NTT DATA SANYO SYSTEMS CORPORATION was established as a joint venture between NTT Data and Sanyo Electric Co., Ltd. The company has origins dating back to 1989. The company's primary services include Business System solutions which includes product management, security management, ERP, and SCM. The Network solutions group includes Internet service (SANNET), ASP, Voice(IP-Phone) and network consulting. Engineering system solutions include PDM solution, CAE solution and Web/3D solutions. For more information, please visit http://www.sannet.ne.jp.
About Zhone Technologies, Inc. (Zhone)
Zhone Technologies, Inc. is the first company dedicated solely to delivering the full spectrum of next-generation local loop infrastructure equipment. The company was founded by the senior management team that grew telecommunications pioneer Ascend Communications, Inc., from its startup roots to the multi-billion-dollar company acquired by Lucent Technologies . Zhone's Single-Line Multi-Service architecture (SLMS(TM)) allows carriers to concurrently deliver voice, new premium data and video services over copper or fiber access lines. Zhone provides carriers with an elegant migration from legacy circuit-based technology to packet based networks while substantially reducing operating costs. With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled carriers to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
For more information, please visit www.zhone.com.
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Contact:
Zhone Technologies
investor-relations@zhone.com
public-relations@zhone.com
Zhone Expands Market-Leading Storage Area Networking Products
New 12-Port ESCON Module Establishes New Threshold for SAN Capacity
OAKLAND, Calif.--(BUSINESS WIRE)--Aug. 17, 2004--Zhone Technologies, Inc., the first company dedicated to building total-delivery solutions for voice, data and video services worldwide, announced today the addition of a new twelve-port ESCON line module to its GigaMux family of industry leading products. This new module provides the ability to multiplex up to 12 ESCON channels over a single optical wavelength, maximizing fiber capacity in bandwidth critical Storage Area Network applications.
GigaMux is a family of metro and regional wavelength division multiplexing (WDM) products designed for high-performance, multi-protocol transport. GigaMux provides a flexible and cost-effective system based on a "pay-as-you-grow" architecture that allows carriers and enterprises to start small and expand their networks based on bandwidth requirements.
Zhone's GigaMux products when used in SAN applications eliminate the bandwidth bottlenecks and scalability limitations of SCSI-based architectures. By utilizing network servers, Zhone's SAN solutions allow a variety of storage devices (such as tape libraries and disk arrays) to be simultaneously shared among large numbers of users in multiple locations.
Zhone's GigaMux SAN solutions are currently deployed on six continents by some of the world's largest enterprises representing a range of industries including banking, insurance, retail, manufacturing and government. As an integral part of these SAN deployments, Zhone's GigaMux provides fast storage and retrieval of mission-critical data among multiple access points, maintains data archives for disaster recovery and creates a safe physical distance for data warehousing.
"Zhone's SAN solution portfolio supports the highest density and broadest range of the industry's most widely accepted protocols including ESCON, Fiber Channel and Gigabit Ethernet," said Darin Clause, Zhone's Vice President of Storage Area Network Markets at Zhone Technology. "Moreover, Zhone has been able to extend the conventional reach of these technologies to support remote storage at distances of over 1000 miles, making Zhone's SAN products the most progressive and advantageous to our customers."
Zhone's GigaMux DWDM and CWDM products have successfully completed interoperability testing and have earned IBM TotalStorage Proven status as well as having successfully completed interoperability testing with EMC Corporation, earning E-Lab Tested status for ESCON distance extension. Through interoperability with leading technology partners, Zhone is better able to ensure the many operational, financial and business benefits that optical technology brings to our customers.
About Zhone Technologies, Inc. (Zhone)
Zhone Technologies, Inc. is the first company dedicated solely to delivering the full spectrum of next-generation local loop infrastructure equipment. The company was founded by the senior management team that grew telecommunications pioneer Ascend Communications, Inc., from its startup roots to the multi-billion-dollar company acquired by Lucent Technologies (NYSE:LU - News). Zhone's Single-Line Multi-Service architecture (SLMS(TM)), allows carriers to concurrently deliver voice, new premium data and video services over copper or fiber access lines. Zhone provides carriers with an elegant migration from legacy circuit-based technology to packet based networks while substantially reducing operating costs. With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled carriers to reinvent their businesses. For more information, please visit http://www.zhone.com.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.
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Contact:
Zhone Technologies, Inc.
Mariann Lackey, 510-777-7013 (Investors)
investor-relations@zhone.com
Jessica Mullens, 510-777-7020 (Media)
jmullens@zhone.com
www.zhone.com
ZHONE TECHNOLOGIES INC Files SEC form 10-Q, Quarterly Report
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001193125%2D04%2D135606%2Etxt&FilePath...
ZHONE DUE DILIGENCE PAGE
ZHONE, INC.
Corporate Profile
Zhone Technologies is developing a complete line of telecommunications equipment for the local access network. Zhone’s products allow network service providers to offer voice, data and video services while optimizing bandwidth, reducing costs and speeding up provisioning.
Zhone enables carriers to easily migrate from traditional circuit-based technology to packet-based networks while substantially reducing operating costs. Zhone’s products also allow service providers to transition to a fiber infrastructure while continuing to operate their current copperbased network. In addition, Zhone’s products allow service providers to add new subscriber services more quickly than is possible with conventional copper access solutions.
With over 10 million access lines deployed at over 300 service providers across six continents, Zhone is enabling carriers worldwide to reinvent their businesses.
Corporate Background
Zhone was founded in 1999 by the senior management team that grew Ascend Communications from its inception to the multi-billion-dollar company acquired by Lucent Technologies.
Zhone is dedicated to simplifying access networks, starting with a simple principle: deliver all services over a single, common infrastructure. By combining voice, data, and video over a single network carriers gain efficiency and reduce costs in all phases of the operation of the network. Most significantly, the multi-service network enables faster deployment of new value-added services, increasing subscriber satisfaction and providing competitive advantage.
Zhone’s products are built on the Single Line Multi-Service (SLMS) architecture, an access network architecture optimized for the delivery of multiple services over a single line. SLMS ensures that services are delivered across the extended access network, from device to device, with the highest levels of performance, security, and reliability. Based on industry-standard protocols, SLMS networks fully leverage existing facilities while providing simplified deployment and operations; improved quality of service and reliability; and accelerated service provisioning and new service roll-out.
Commitment to Quality
As part of its commitment to quality Zhone has established two interoperability test laboratories, representing a significant investment in capital, facilities, and staff. These two labs include 5 local exchange switches with a capacity to simulate traffic equivalent to a city of over 400,000 people. Additional equipment allows testing of high-speed data and video services as well as interoperability with a complete range of 3rd party systems.
Zhone is ISO 9001:2000 certified in the design, manufacture, and service of
electronic telecommunications equipment.
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ZHONE HOME PAGE
http://www.zhone.com/
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MANAGEMENT
Under the direction of President/CEO Mory Ejabat and Vice President/CTO Jeanette Symons, Zhone's management team draws upon more than 200 years of collective experience in telecommunications and networking technology disciplines. Zhone's senior managers came from Ascend Communications, Inc., where they grew the company from its startup roots into the multi-billion-dollar company acquired by Lucent Technologies (NYSE: LU) in September 1999.
Mory Ejabat, Chairman and CEO
Ejabat is the architect of Zhone's corporate vision. He was formerly president and CEO of Ascend Communications, Inc., which Lucent Technologies purchased in 1999 for $24 billion. Under Ejabat's leadership, Ascend's annual sales grew from $40 million to nearly $2.3 billion in five years. Earlier in his career, Ejabat was vice president for wide area communications products at Micom Systems, Inc.
Jeanette Symons, CTO and Vice President, Engineering
Symons is the visionary guiding Zhone's overall product development strategy. Before joining Zhone, she was chief technical officer and executive vice president of Ascend Communications, Inc. One of Ascend's three founders, Symons was responsible for the company's technology direction and advanced development. Before Ascend, Symons was a software engineer at Hayes Microcomputer, a leading modem manufacturer, where she developed and managed the company's ISDN program.
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INVESTOR RELATIONS
For further information please contact:
Zhone Technologies
Investor Relations
@ Zhone Way
7001 Oakport Street
Oakland, CA 94621
Telephone: 510-777-7013
Email: investor-relations@zhone.com
http://www.zhone.com/about/investors/index.html
Shares Outstanding:-------------- 78.02M
Float:--------------------------- 77.20M
% Held by Insiders:-------------- 1.05%
% Held by Institutions:---------- 17.78%
Shares Short (as of 7-Apr-04):--- 702.00K
Market Value:--------------------$ 256,685,800
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STRATEGIC ALLIANCES
Zhone is forming technology alliances with an array of communications hardware and software vendors in order to speed its time to market with products that extend intelligence throughout the local access network.
Ericsson
Ericsson, a leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet, has formed a strategic partnership with Zhone, providing Zhone's broadband access product line(s) through its extensive global market channels. In addition, the Zhone partnership will enable Ericsson to become the preferred prime contractor in large-scale carrier projects worldwide.
Qwest
Zhone Technologies has formed a joint development agreement (JDA) with Qwest Communications International Inc., a leading provider of broadband Internet communication services worldwide. The two companies will work closely together to leverage the components of Zhone's Single Line Multi-Service (SLMS™) architecture. The SLMS architecture will enhance the delivery traditional voice and high-speed Internet access over Qwest's broad copper plant infrastructure while, simultaneously reducing the complexity of provisioning and service management across the company's distributed network architecture.
Texas Instruments
Texas Instruments Incorporated (TI) (NYSE:TXN), the world leader in digital signal processing (DSP) and analog, is providing DSP chips for voice and xDSL data line processing in Zhone products. Zhone is leveraging TI's rich software and third-party support to adapt its technology for many different applications within its product line.
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CUSTOMERS
Zhone provides communications solutions to service providers and network operators worldwide.
With over 300 customers on six continents and over 11 million access lines in service, Zhone's solutions are field-proven by incumbent, competitive and emerging carriers around the globe.
Selected Customers
Arrival Communications (California, US)
Bayland Telephone (Wisconsin, US)
Consolidated Communications (Illinois, US)
British Telecommunications (BT) (UK)
CP-Tel Network Services (Louisiana, US)
Dixie-Net Communications (Mississippi, US)
Etisalat (United Arab Emerites)
Noicom SPA (Italy)
OmniTel Communications (Iowa, US)
SRT Communications (North Dakota, US )
Tricom (Dominican Republic)
Trinity Valley Services (Texas, US)
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ACQUISTIONS
Zhone is acquiring best-in-class companies and resources to speed its time-to-market and to access the best available talent with focused efforts on specific areas of the access network. Zhone has acquired the following companies and resources to date:
Gluon Networks - leading developer of next-generation converged switching systems for telecommunications service providers. The portfolio includes a switching and signaling gateway interface which seamlessly bridges next generation VoIP networks with legacy circuit switch networks.
Tellium - high-speed, high-capacity, intelligent optical solutions that empower service providers around the world to create, run, control, simplify and optimize their networks.
NEC eLuminant - Subsidiary of NEC America with a portfolio of market-leading access products including multiplexers, Digital Loop Carriers, SONET and fiber distribution systems.
Vpacket Communications - innovative converged voice/data broadband company focused on providing managed voice-over-packet solutions for network service providers. Vpacket's award-winning IP-based customer premises equipment, featuring advanced VoIP QoS capabilities and high-speed Ethernet interfaces, enhance Zhone's customer solutions and strengthen Zhone's technology portfolio.
Nortel Networks AccessNode Universal Edge 9000 Product Line - this product line, acquired from Nortel Networks, establishes Zhone as a leader in the access network market. AccessNode is a multi-fabric, high-density, integrated access platform designed to deliver a full suite of narrowband and broadband services to subscribers.
Xybridge Technologies - the leader in creating the wireless industry's first carrier-class IP-core solutions for broadband wireless mobile networks. Xybridge's softswitch, which offers carrier-grade scalability and reliability, will enhance Zhone's converged access architecture by providing network call control and intelligence, enabling multi-media services as well as delivering traditional Class 5 and mobility features.
OptaPhone Systems – This leader in cost-effective wireless, short-haul, and "last mile" solutions for public, private, and government networks supports Zhone's mission of providing end-to-end local loop solutions over any medium.
Roundview – This engineering firm, dedicated to developing project-oriented software for Internet networking technologies, will focus exclusively on enhancing IP data logic for Zhone's products.
CAG Technologies – This worldwide leader in developing, manufacturing, and supplying telecommunications subsystems and assemblies brings Zhone a senior equipment design and development team and a product development infrastructure.
Premisys Communications – This leading supplier of integrated access solutions will support Zhone's strategy for providing premises-based platforms that integrate access to a wide variety of voice, data, and video services.
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PRODUCTS
http://www.zhone.com/products/index.html
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MOST RECENT NEWS
April 2004
Zhone Technologies to Acquire Sorrento Networks
(April 22nd, 2004)
Zhone Technologies, Inc. Reports First Quarter 2004 Financial Results
(April 22nd, 2004)
Zhone Introduces the MALC IP Access Gateway
(April 20th, 2004)
Zhone Introduces New Line-Powered Additions to its Family of Raptor DSL Access Multiplexors
(April 14th, 2004)
Zhone to Report First Quarter 2004 Earnings
(April 5th, 2004)
March 2004
Scarlet Selects, in Belgium, Zhone’s Multi-Service Platform for Delivery of Integrated Voice and Data Services Over DSL for Residential and SME Customers
(March 17th, 2004)
Zhone Technologies Announces Filing of Shelf Registration Statement
(March 5th, 2004)
ENTEL Selects Zhone Technologies Raptor™ ATM/IP DSLAM
(March 2nd, 2004)
GVT Selects Zhone Technologies Raptor™ ATM/IP DSLAM
(March 2nd, 2004)
February 2004
Zhone Technologies Introduces Z-Edge™ 6200 VoIP IAD
(February 24th, 2004)
Current Analysis Gives Zhone Technologies' Broadband Infrastructure Equipment Highest Ranking
(February 10th, 2004)
Zhone Technologies, Inc. Reports Fourth Quarter 2003 Financial Results
(February 3rd, 2004)
Zhone Technologies to Acquire Assets of Gluon Networks, Inc.
(February 3rd, 2004)
January 2004
Zhone to Present at Thomas Weisel Partners’ Tech 2004 Conference
(January 28th, 2004)
Zhone Introduces The Raptor 100 LP
(January 27th, 2004)
Zhone Announces Emulated Loop Control Protocol (ELCP) Support
(January 15th, 2004)
Zhone to Release Fourth Quarter and Full Year 2003 Earnings on February 3, 2004
(January 14th, 2004)
Xpress Online Selects Zhone's Delivery Platforms For Voice and Data Services
(January 6th, 2004)
(more news)
http://www.zhone.com/press/index.html
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ZHONE TECHNOLOGIES, INC.
COMPANY WEBSITE
http://www.zhone.com/
COMPANY PROFILE
About Zhone
Zhone Headquarters
The Service Provider Challenge
Perhaps for the first time, service providers are facing real competition to their primary businesses. Competitors are encroaching with integrated voice, data and video services that are price competitive. While the addition of video services will help complete their existing service offerings, carriers must also defend their voice and data businesses while simultaneously retooling to rapidly evolving packet-based services. Service Providers need a manageable, scalable, more cost-effective delivery platform that extends their existing networks and allows them to defend their subscriber base and sustain long-term growth.
The Zhone Solution
Zhone's Single Line Multi-Service architecture (SLMS™), allows carriers to concurrently deliver voice, new premium data and video services over copper or fiber access lines. Zhone provides carriers with an elegant migration from legacy circuit-based technology to packet based networks while substantially reducing operating costs. With deployments at over 600 service providers and network operators including among some of the world's largest networks, Zhone has enabled service providers to reinvent their businesses.
The Company
Zhone Technologies, Inc. (Nasdaq: ZHNE) was founded by senior executives of Ascend Communications and began operations in September 1999. With corporate headquarters in Oakland, California, the company operates development centers across North America and has sales and service facilities and customers spanning the globe.
Zhone's SLMS architecture delivers key benefits to service providers:
Optimized Broadband Access
Zhone provides the most comprehensive array of scalable platforms and cabinets supporting 8 to 2880 ports per enclosure. Local or line-powered options extend reach to 38,000 ft. / 11.6 km while optional watertight outside plant (OSP) enclosures allow pole, pedestal or underground deployment. This deployment flexibility minimizes loop lengths with precise port densities allowing carriers to provide the ubiquitous broadband needed for triple play services.
Optimized Migration to Packet
Software selectable line and trunk interfaces provide elegant circuit to packet migration. Flexible uplinks including GR-303 / V5.2 / OC-12 / Gig-E allow carriers to deploy and maintain existing TDM services while simultaneously retooling for packet voice using SIP, MGCP or H.248 signaling. Zhone's Flexband™ technology supports broadband and narrowband service without cutovers or the need to dispatch OSP technicians.
Optimized Triple Play
Zhone's innovative end-to-end solution alleviates incompatibilities and smoothes upgrades. The Zhone Residential Gateway eliminates in-house rewiring, eliminates Set-Top Boxes, eliminates scheduled service calls, eliminates in-home liabilities and enhances customer experience.
Optimized Transport
Zhone integrates packet access + Resilient Packet Ring (RPR) transport to handle both TDM and packet traffic using shared virtual rings to provide efficient and cost-effective service delivery. Multicast and broadcast traffic is delivered much more efficiently with RPR offering carriers maximum bandwidth efficiency and QoS guarantees. Zhone's RPR adheres to the IEEE 802.17 standard offering sub-50ms protection switching and simplified provisioning.
Commitment to Quality
As part of its commitment to quality Zhone has established two interoperability test laboratories, representing a significant investment in capital, facilities, and staff. These two labs include 5 local exchange switches with a capacity to simulate traffic equivalent to a city of over 400,000 people. Additional equipment allows testing of high-speed data and video services as well as interoperability with a complete range of 3rd party systems.
Zhone is ISO 9001:2000 certified in the design, manufacture, and service of electronic telecommunications equipment.
http://www.zhone.com/about/zhone-iso-9001-2000-certificate.pdf
PRODUCTS
Solutions
Voice, Video and Data "Triple Play" Solutions
http://www.zhone.com/solutions/
WHITE PAPERS - pdf format
http://www.zhone.com/solutions/whitepapers/
CURRENT NEWS AND EVENTS
This link goes directly to ZHNE's News link for Product, Customer and Financial Up-dates
http://www.zhone.com/about/news/
MANAGEMENT
Mory Ejabat
Chairman and Chief Executive Officer
Mory Ejabat is a co-founder of Zhone and has served as its Chairman of the Board of Directors and Chief Executive Officer since its inception. Prior to co-founding Zhone, from June 1995 to June 1999, Mr. Ejabat was President and Chief Executive Officer of Ascend Communications, Inc., a provider of telecommunications equipment which was acquired by Lucent Technologies, Inc. in June 1999. Previously, Mr. Ejabat held various senior management positions with Ascend from September 1990 to June 1995, most recently as Executive Vice President and Vice President, Operations. Mr. Ejabat holds a B.S. in Industrial Engineering and an M.S. in Systems Engineering from California State University at Northridge and an M.B.A. from Pepperdine University.
Kirk Misaka
Chief Financial Officer, Treasurer and Secretary
Kirk Misaka has served as Zhone's Vice President, Finance and Corporate Treasurer since November 2000 and as Chief Financial Officer since July 2003. Prior to joining Zhone, Mr. Misaka was with KPMG LLP from 1980 to 2000, becoming a partner in 1989. He is a Certified Public Accountant and member of the American Institute of Certified Public Accountants. Mr. Misaka received his B.S. and an M.S. in Accounting from the Universit
COMPANY STOCK CHART
SHARE STRUCTURE
Authorized 900,000 shares;
issued and outstanding 148,648 and 147,759 shares;
as of March 31, 2006
FINANCIALS and SEC FILINGS
This link goes directly to ZHNE's SEC Filings
http://www.sec.gov/cgi-bin/browse-edgar?type=&dateb=&owner=include&action=getcompany&....
INVESTOR RELATIONS
For further information please contact:
Zhone Technologies
Investor Relations
@ Zhone Way
7001 Oakport Street
Oakland, CA 94621
Telephone: 510-777-7013
Email: investor-relations@zhone.com
SolutionsBroadband Access Solutions Delivering Residential and Business Voice, Video and Data Services over Copper or FiberFTTxSocial networking and new media have created unprecedented expectations for personalization and interactivity in entertainment and business communications. As applications bloom to address the market opportunities, they are putting pressure on limited bandwidth and driving user demand for higher bandwidth access technologies. Fiber solutions offer carriers a means to deliver orders of magnitude more bandwidth while reducing their Total Cost of Ownership (TCO). Zhone equipment provides carriers FTTx solution options for strategically introducing Active Ethernet and GPON while ensuring a migration path to emerging 10G access technologies. Multi-ServiceMulti-Service packages are critical to carriers' success today. Service differentiation and time-to-market advantages accrue to carriers who can present their customers with new solutions that combine familiar voice, data and video services for compelling applications in a competitive market. Multi-service implementations require an architecture that anticipates multiple data types and protocols while ensuring interoperable standards-based network elements. Zhone's pioneering work in multi-service solutions with its SLMS architecture has provided its customers with tremendous CAPEX and OPEX savings along with time-to-market advantage with new, revenue-generating applications and services. StimulusAmerica's 2020 Broadband Vision is aimed at improving US global competitiveness, generating new jobs, harnessing innovation and, above all, strengthening America's position as a global leader in the 21st century. At the heart of the 2020 Broadband Vision is the goal of providing 100 million households with affordable 100 Mbps service and ensuring affordable 1 Gbps service in every American community by the year 2020. As the leading US manufacturer of high performance access equipment, Zhone solutions deliver compelling 100 Mbps and 1 Gbps solutions today. Zhone stands ready to work with US carriers to leverage stimulus funding to bring the promise of the 2020 Broadband Vision to their local communities. Mobile BackhaulZhone FiberCell, an extension of Zhone's market-leading FTTx solutions, is a carrier-class mobile backhaul solution designed to address increased bandwidth needs in today's data-centric service environment. Service Providers currently utilize T1/E1 lines for backhaul which results in extremely high monthly re-occurring T1/E1 fees and service charges for mobile backhaul besides not being adequate for the bandwidth requirements. With Zhone FiberCell solution, Zhone customers are benefited with the option of copper and/or fiber based Mobile Backhaul options providing cost-effective backhaul bandwidth upgrades. EZ Touch ProvisioningZHONE EZ TOUCH PROVISIONING - an extension of the Zhone Management System (ZMS) - is the next-generation carrier-class network management and provisioning solution for SHDSL EFM CPEs (ETHX) and non-OMCI GPON and Active Ethernet zNID ONTs. As networks are getting more complex and expensive to manage, service providers are looking at ways and means to reduce their recurring operational expenditure (OPEX) by minimizing truck rolls and manual subscriber-specific features and, effectively, automating the service provisioning functionality. |
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