Nyquist Capital » COMS

Cisco’s Fear of a Broadcom Planet

Andrew Schmitt — Mon, 20 Aug 2007 14:20:29 +0000

There are few franchises in the silicon business where one vendor so completely dominates the market. Everyone can name Intel’s CPU business as one. But can you name another?

Infineon/TI (IFX) in DSL is a contender. Conexant (CNXT) in PC modems (but little profit to show for it). Netlogic (NETL) in exotic CAM’s (but beholden to one sugar daddy customer - Cisco).

But nothing approaches the complete and total dominance of Broadcom’s (BRCM) grip on Ethernet switching silicon.

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Nyquist Predictions For 2007

Andrew Schmitt — Tue, 02 Jan 2007 23:03:32 +0000

Prediction is an entertaining activity better suited for stimulating discussion than providing an absolute outlook on the future. Therefore, the bolder and more controversial, the better. Keep that in mind as you read and respond.

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Dr. Strangelove, Or: How I Learned To Stop Worrying and Love Huawei.

Andrew Schmitt — Mon, 20 Nov 2006 20:05:35 +0000

I know two American engineers who have relocated to China to lead optical module design teams at Chinese equipment companies. They live and work in China for Chinese companies, using their skills to build custom modules - skills no longer in demand from their American Tier-1 telecom equipment employers.

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Cisco’s Scorched Earth Strategy

Andrew Schmitt — Tue, 14 Nov 2006 19:06:26 +0000

Cisco swallowed another chip company this morning, Greenfield Networks. The notable thing about this acquisition is that Cisco rival Huawei/3Com built their high end system around the Greenfield device. I’m willing to bet that Greenfield was a lot more important to Huawei/3Com than it was to Cisco. And I’m willing to bet that’s why Cisco bought them.

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The End of Telecom As We Know It And I Feel Fine

Andrew Schmitt — Mon, 25 Sep 2006 19:18:01 +0000

Anyone know where the next ten-bagger investment is in the Telecom sector? Does anyone believe such an idea is even possible anymore?
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Nortel / Huawei Joint Venture Dead

Andrew Schmitt — Wed, 07 Jun 2006 15:21:27 +0000

On February 2, 2006, the day the Nortel/Huawei Joint Venture was announced, Google directed a search to this site with the following terms. My Web Stat software picked it up.

I guess I found the fact that someone from Nortel was trying to understand problems with the Huawei / 3COM venture after they had just completed one themselves was, ironic.

Now, it looks like the Joint Venture between Nortel and Huawei is over. It’s hard to say whether this is positive or negative, since so little was known about the intent in the first place.

From yesterdays 10-Q filing (Page 50):

On November 9, 2005, we and Huawei Technologies Co., Ltd. entered into a non-binding Memorandum of Understanding to establish a joint venture for developing ultra broadband access solutions. We and Huawei have now decided not to proceed with a joint venture,” reads the filing.

Hat Tip to Lightreading

Huawei-3COM

Andrew Schmitt — Mon, 23 Jan 2006 15:06:54 +0000

Good discussion on Huawei-3COM in this weeks Barron’s.

If you’re hot to get in on the Chinese Telecom/Datacom hardware trend, 3COM (COMS) is your best vehicle. I wonder how Huawei-3COM has approached accounting issues…

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