Procera: "lower than anticipated total addressable market" for NAVL

In its filling to the SEC (here), Procera Networks states:

"On September 15, 2014, Procera Networks, Inc. (“Procera” or the “Company”) concluded that it will be required to record an impairment charge to write-down the carrying value of its goodwill and intangible assets recorded as part of the Company’s 2013 acquisition of Vineyard Networks, Inc. (“Vineyard”)"

See "DPI Merge: Procera Acquires Vineyard Networks for $28M; Riverbed OEM Adds Enterprise Business" - here

"Under generally accepted accounting principles, when indicators of potential impairment are identified, companies are required to conduct a review of the carrying amounts of goodwill and other long-lived assets to determine if impairment exists.

As a result of lower than anticipated total addressable market and revenue growth of Vineyard’s Network Application Visibility Library (“NAVL”) products, the Company has begun an impairment review of its NAVL intangible assets and goodwill, and currently estimates that it will record a write-down in the range of $10 to $16 million (on a pre-tax basis) and that the write-down will result in future cash expenditures in the range of $100,000 to $200,000, related primarily to severance obligations.

The Company will continue to support and enhance the NAVL product going forward".

Procera Sees Increased Interest in US Mobile (3 Trials)

Procera Networks published its Q2 results (revenues of $20.6M, here), and provided some additional information during the earning call - mostly by James Brear [pictured], CEO shown below, with some quotes from Procera's SEC filing (here).Similarly to Allot Communications (see "Allot: Expects US Growth" - here), Procera is positive on the US mobile market.

• About the recently announced RAN perspectives (see  also "More on Procera's Device-based Solution" - here): "We're excited that we have a number of Tier-1 mobile operators testing this technology, and we plan to announce further RAN Perspectives enhancements in the coming quarters .. [it] really extend our reach into the RAN, but even specifically onto the device. We are going to have our technology embedded in the SIM that allows us to get location awareness. And for the service provider, that's very valuable, when you can combine RAN intelligence with packet intelligence".
   
• Trial activity is strong. We have 14 direct trials with Tier-1 global service providers. These trials are underway or plan to begin in the next 60 days. It should be noted that we continue to see increased interest from U.S. mobile operators and are in or plan to begin trials with 3 U.S. mobile carriers .. [RAN Perspective] has not been presented to them yet"

• Based on our bookings, current funnel and expected orders, we are maintaining our full year revenue guidance of 15% growth compared to 2013 .. over the last 24 months, we definitely seen an increase in our mobile, and I would expect that to continue".
    
• For the three months ended June 30, 2014, two customers represented 11% [$2.3M] and 10% [$2M], respectively of net revenue with no other single customer accounting for more than 10% of net revenue. For the six months ended June 30, 2014, no single customer accounted for more than 10% of net revenue
   
• OEM business - For the three and six months ended June 30, 2014, Vineyard contributed approximately $1.1 million and $2.1 million in revenue

See "Procera Networks' (PKT) CEO James Brear on Q2 2014 Results - Earnings Call Transcript", By SeekingAlpha - here.

Procera Enhances DPI OEM Engine with IPv6, GTP and Metadata Extraction

Procera Networks announced a new version of its DPI engine - the OEM product acquired recently from Vineyard networks (see "DPI Merge: Procera Acquires Vineyard Networks for $28M; Riverbed OEM Adds Enterprise Business" - here).

Last week, Procera announced a new OEM partner, this time a telecom vendor for its DPI engine (here).

   

The new NAVL version 4.0 " .. adds IPv6 support, de-tunnelling of GTP traffic, improvements in metadata extraction, and OEM industry-leading high performance throughput capabilities, while conserving resources and enabling regular updates through the NAVL plug-in architecture".

"The NAVL 4.0 DPI engine can easily classify traffic at speeds well above 100Gbps, with minimal effect on network response times, latency or jitter"

Enhanced Property Extraction

"NAVL 4.0 is delivered as a software image that can be deployed in a number of processors and processing architectures, including x86 32bit, x86 64bit, Cavium Octeon, Octeon II, Octeon III, ARM, PowerPC, Tilera and Freescale".

          

See "Procera Networks Offers New NAVL 4.0 DPI Engine as SDK for License to OEMs" - here.

DPI Merge: Procera Acquires Vineyard Networks for $28M; Riverbed OEM Adds Enterprise Business

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Vineyard / Procera

Procera Networks announced it has "..entered into a definitive agreement to acquire Vineyard Networks Inc., a leader in the Enterprise OEM DPI market [Riverbed, Xirrus]. The acquisition will enable Procera to extend its Intelligent Policy Enforcement business into the growing Enterprise DPI market .. The total addressable market (TAM) for the Enterprise OEM DPI market is expected to be over $300 million in 2013".

James Brear, President and CEO, Procera said: “ .. Vineyard enables Procera to expand our total addressable market through their OEM business, to include enterprise network equipment vendors, adding the entire enterprise space along with additional opportunities in the service provider OEM market. The addition of Vineyard, which has 34 employees mostly in engineering and product development, establishes Procera as the clear leader in the high-growth DPI market”.

"The total consideration for the acquisition is $28.0 million CAD, comprised of $15.4 million CAD in Procera common stock and $12.6 million CAD in cash. The acquisition is subject to the satisfaction of certain closing conditions, and is expected to close on or before January 15, 2013 .. Vineyard is expected to add approximately $4 million to $5 million to Procera’s 2013 revenue, with gross margin in excess of 90%"

See "Procera Networks to Acquire Vineyard Networks" - here.

Aruba's WLAN Optimizes QoS and Fairness w/DPI

 
Aruba Networks, announced recently a new "..wireless LAN platform that addresses the explosion of mobile applications and devices challenging enterprise networks, while dramatically reducing enterprise IT costs .. the Aruba 7200 Series with new Aruba AppRF technology is the only [?*] wireless LAN platform with the integrated application intelligence and controls to optimize application delivery. This insight, and the ability to take real-time action, results in 11x better performance compared to existing solutions". 

*Several weeks ago Xirrus announced a similar industry first (here) - "..a wireless industry first: comprehensive Layer 7 application visibility and control directly at the wireless network edge", using Vineyard's DPI engine (here).  

Back to Aruba - "To accomplish this, Aruba AppRF software, which runs on the 7200 mobility controller, uses Deep Packet Inspection (DPI) for Layer 7 insight to identify application traffic. Then, using Airtime Fairness, QoS and integrated control of RF characteristics on the access points, the controller optimizes over-the-air performance for each application type and user profile".

"The Aruba 7200 Series Mobility Controllers, which include three models – the 7210, 7220 and 7240 – are available now, with prices starting at $16,995 U.S. list".

See "Aruba Networks Introduces First Wireless LAN Platform Optimized for Mobile Application Delivery" - here.

Xirrus Wireless Access Uses Vineyard's DPI for Application Visibility

   

Vineyard Networks announced that Xirrus Wireless Arrays uses ".. Vineyard’s Network Application Visibility Library (NAVL) Layer 7 Deep Packet Inspection (DPI) and application classification technology".

Last month Xirrus announced (here) "..a wireless industry first: comprehensive Layer 7 application visibility and control directly at the wireless network edge. Xirrus Application Control builds on the power of next-generation Deep Packet Inspection (DPI) technology to provide rich information about applications accessing the network allowing Xirrus Wireless Arrays to prioritize critical applications, restrict usage of bandwidth-heavy applications, block restricted applications, and detect new threats to the network".

"Application Control enables management of wireless traffic where you need it most – at the network edge before it enters the core network – to provide full control to network administrators to manage the exploding usage and unpredictable nature of Bring Your Own Device (BYOD)."

 

See "Vineyard Networks’ Network Application Visibility Library (NAVL) Provides Layer-7 Deep Packet Inspection and Application Classification for Xirrus Application Control" - here.

Riverbed OEMs Vineyard's DPI Engine

  

Vineyard Networks announced that Riverbed Technology ".. has licensed Vineyard’s Network Application Visibility Library (NAVL) deep packet inspection (DPI) engine, designed to provide Riverbed® customers with comprehensive application classification technology to protect critical applications while containing recreational applications"

According to Vineyard, its DPI software is part of the recent enhancements to Riverbed's Steelhead (RiOS release 8.0) and the enhanced Layer 4-7 app classification capabilities in it. Riverbed now claims the ".. ability to scale automatic identification and prioritization to more than 600 applications" (see "Riverbed Introduces Software Enhancements and New High Performance Hardware Models to Steelhead Product Family" - here)

Vineyard partners' page (here) shows additional vendors as "powered by Vineyard" including BlueCoat.

"Integrating NAVL with market-leading Riverbed wide area network (WAN) optimization solutions increases the accuracy and efficiency of the real-time network traffic classification. The licensed technology helps identify all types of applications, even hard to detect applications and custom applications, to protect critical applications like web, voice, and video and contain recreational application traffic".

See "Vineyard Networks Announces Strategic Relationship with Riverbed to Provide Powerful Layer-7 Application Identification Technology" - here.

DPI Announcements: Adax and Vineyard to Offer OEMs Integrated H/W S/W

Adax and Vineyard Networks announced a partnership to "deliver a combination that easily integrates into OEM and VAS solutions for Policy Control and Traffic Shaping, Optimization and Redirection"

"The Adax Pkt-AMC and Pkt2-PCIe Cavium-based controllers provide front-end intelligent processing, delivering line speed packet processing for these demanding telecom applications across a range of platforms, such as ATCA blades, AMC cards or PCIe rack mount servers. The functionality of Adax’ controllers can now be extended by integrating Vineyard’s DPI engine, Network Application Visibility Library (NAVL)"

See also "Adax and Qosmos Offer ATCA based DPI Subsystem" - here.

 

See "Adax and Vineyard Networks Announce DPI Partnership" - here.

DPI Announcement: Netronome Launches a 200 Gbps Flow Processor

Netronome disclosed the details of the "NFP-6xxx family of processors .. the industry’s first programmable 200Gbps flow processor. The scalable NFP-6xxx product line targets designs from 10 to 400 Gbps based on the following features and supported flow processing building blocks: 256 Gbps Processing Complex, 100 Dedicated Accelerators, Optimized Memory Architecture, 50 Gbps Security Processing, 720 Gbps of Processor I/O, Easy and Flexible Programing Tools and Extensive Software Libraries.

Netronome's ecosystem partners list includes DPI enabling technology software vendors:

• Qosmos (see "Netronome and Qosmos to Offer DPI Processing at 100Gbps" - here)
• Vineyard Networks (see "Vineyard Partners with Netronome and LSI" - here).

See "Netronome Unveils 200 Gbps Flow Processor" - here.

DPI Announcements: Vineyard Partners with Netronome and LSI

Vineyard Networks announced two partnerships with packet processor vendors for its DPI code software library Network Application Visibility Library (NAVL), in addition to the previously announced support to Cavium (here):

• Netronome - "a strategic partnership to provide a 40Gbps OEM Deep Packet Inspection (DPI) solution for vendors building next-generation, application-aware networking applications. The solution combines Vineyard’s Network Application Visibility Library (NAVL) DPI engine and Netronome’s Network Flow Processors to offer advanced networking functionality, high performance flow processing, application recognition and metadata extraction at line rate 40Gbps speeds with a follow on platform capable of performing DPI at 100Gbps"
  
  See "Vineyard Networks and Netronome release 40Gbps DPI offering for Next-Generation Networking Applications" - here.

• LSI: "collaboration to provide a next-generation Deep Packet Inspection (DPI) OEM solution .. Vineyard's next-generation DPI engine (NAVL - Network Application Visibility Library) has been integrated with the advanced hardware architecture of LSI's Axxia™ communication processor family of products to accelerate deep application recognition and metadata extraction of network traffic".
  
  See "Vineyard Networks and LSI Partner to Accelerate Deep Packet Inspection" - here.

DPI Announcements: Vineyard's DPI Engine Supports Cavium Processors and S/W

  

Vineyard Networks announced "..its product support for the new state-of-the art OCTEON® III MIPS64® family of 1 – 48 core multicore processors, as well as its product integration into the TurboDPI™ framework [here] .. Vineyard Networks’ next-generation Deep Packet Inspection (DPI) engine, Network Application Visibility Library (NAVL), easily integrates into third party network infrastructure solutions to provide industry leading L7 detection of thousands of today’s most popular applications. In addition, it has the ability to extract extensive sets of metadata and application attributes from network traffic in real time". 

See "Vineyard Networks delivers Next-Generation Deep Packet Inspection and Application Detection up to 100Gbps on OCTEON III Processors" - here. 

Source: Vineyard Networks

See competitive announcements from Sensory Networks and Qosmos