taken from si and a rehash of the nov cc:
From: Cooters 11/10/2006 2:21:40 PM
1 Recommendation of 789
CC notes, with opinions interjected:
- Revenue was a record $75M, driven by a large decrease in DR attributable to KDDI, which represented at least 30% of revenue and probably much more. KDDI was the only 10%+ customer. The top 5 customers represented 71% of Rev. vs. 80% in Q2. 54 customers contributed vs. 53 in Q2.
- Cash at a record $346M. New orders vs. Revenue below 1. Q4 orders and H2 orders are running ahead of 2005, Current Q4 orders are at record levels.
- Verizon was among the customers EXPANDING their deployment in Q3. Cingular contributed to orders and revenue in Q3. T-Systems contributed to revenue in Q3.
- Non-GAAP Gross Margins are above 62%, as they were in Q2. Operating Margins were in the LT target range of 17%-20%, they may not hit that bogey in Q4 but maintain 2007 will be in that range.
- Employee count up to 817 vs. 784 in Q2, mostly in India
- Raised H2 guidance to above 10% over H1, which would indicate a small sequential decline in Q4 versus Q3. Hassan said he was going to resist the temptation to give specific Q4 guidance.
- Hassan said business is growing ahead of the market rate, they are gaining market share. They are also being selected WELL ahead of the competition for new deployments.
- RFP activity is broad in nature, the movement to VoIP globally is now unstoppable. They are seeing no pricing pressure, prices are stable.
- In Q32006 one of the world's top 5 wireline operators increased traffic over their Sonus network over 100% on an annual basis.
- 4 of the top 5 operators in the world ARE deploying Sonus solutions and increasing traffic over them. Also worded it 4/5 are BUILDING IP Voice networks with Sonus. Being conservative and saying he is referring to Cingular with regard to ATT, IMO we have a new deployment somewhere within NTT/NTT DoCoMo and an expansion within VZ/MCI in the business or core area.
- Was selected for a trial of FMC w/one of the world's largest operators. Now I did not hear them say one of the Top5, so this could be KDDI, or Softbank/VOD, and possible not NTT/DoCoMo, though I still think that is it.
Cooters
AI
