From CIBC’s comments on MRV’s Q2.
“But the quarter's biggest upside came from the "other networking products" category, which climbed 62% sequentially. This category remains opaque as management provided little color on what it actually includes, only suggesting that revenues in this category are partially military-related.”
CES may be "opaque" to CIBC and I know MRV is hardly the most transparent company but if CIBC would just pay attention to facts readily available from public sources, I think things would be much clearer.
The "other networking products" comment refers to CES, MRV’s Swiss subsidiary. The reference to military-related refers to avionics and communications testing contracts CES has on the on the USAF Predator drone aircraft. Not just a coincidence that a nice photo of the Predator is on the cover of their company presentation.
However, the big news here is the 63% YoY increase in revenues. In the years since MRV bought them in 2000, CES revenue has been modest and relatively static.
This dynamic growth spurt in revenues at CES which is now gaining visibility is primarily due to 3G work with Ericcson via Tieto Enator tietoenator.com and to work CES does on the Airbus 380. Staff at CES has increased 20% in the last year to 60 engineers.
“Ericsson -RNC Simulator
CES is collaborating with a Swedish company (:http://www.tietoenator.com) in the development of a RNC simulator for Ericsson. The simulator will be used to validate Ericsson 's BTS product throughout its life cycle, including the stages of development, production and maintenance. The simulator will be used in the Japanese market (i.e.NTT-DoCoMo) and the European markets (various operators).
CES delivers the computing platform, the ATM network interfaces and the Transport Network Layer. Our partner has developed the Radio Network Layer as well as a scripting mechanism, which is used to validate the BTS. CES is responsible for system integration.”
From "Tns presentation".. slide 8 May 2003 no longer available on the CES website.
But see
ces.ch
And
ces.ch
Earlier this year, CES issued a press release which included this comment:
“In 2003 we increased our turn-over by 30% and our know-how by 300%, through
major contracts with Alenia, British Aerospace, EADS Airbus, EADS CASA,
EADS Defense Electronics, EADS Military Aircraft, L-3Com, etc. This
reinforces our claim that in the aircraft test and airborne equipment
market, CES offers the most advanced and innovative technological products
and services. All of this combined with our friendly support tradition,
makes CES the reference!”
ces.ch under news.
Although we hear almost nothing about CES, revenue growth there is apparently suddenly accelerating at a significant rate. CES’s current revenue growth rate certainly exceeds that of Luminent (which decreased in the latest Quarter compared to the prior Quarter). At the present time, CES revenue in absolute dollars (approx. $12.7 million) actually exceeds that of Luminent and if these growth rates continue, may continue to do so even with the FTTP ramp.
CES is also becoming a major passenger aircraft subcontractor for avionics
The adoption and modification of the Full Duplex (switched) Ethernet for avionics requirements led to the inception of the
AFDX (Avionics Full Duplex Switched Ethernet) protocol specified by Airbus. That will be the first time that a standard
network protocol is used extensively to interconnect avionics equipment where multiple emitters and receivers are connected
through a switching element.
The Airbus A380 will be the first aircraft to use avionics bus based on AFDX protocol. The AFDX contributes to the IMA
(Integrated Modular Avionics) model introducing new possible architecture topologies (Multi function real time computers,
Distributed and communication resources) as opposed to the classic avionics model ……….
ces.ch
The white paper also mentions that there is an avionics retrofit market here for the AFDX.
The AFDX concept and IMA architecture has introduced for the first time network technology in avionics systems.
Specifications have provided the AFDX with the required deterministic performance. The plan is now to capitalize on such
effort and introduce AFDX in other aircraft program in the near future (new aircraft and major retrofit).
Evolution of the CES AFDX resources will be easy to make taking into account the design and validation effort performed in
the early stage of the project. Enhancements. e.g. additional functionality can be added without complete re design of the
AFDX PMC. For a given set of functions, technology insertion will lead as well to cost reduction for future AFDX projects.
This is an interesting growth opportunity for CES.
Other items of interest re CES
CES - Hughes software
Dec. 2002
hssworld.com
Flextronics takes stake in HSS < June 2004
hssworld.com
hedgeclipper |
