TXP Corporation (fka TXPO)

[lihkauai2004]

Revisiting the last 10Q:

Looking back through the latest 10Q and the associated PR, several points deserve re-emphasis, imo.

http://www.txpcorporation.com/html/release.php?press_id=87&

Second Quarter 2007 Highlights:
· Revenue increase of 70% in the three months ended June 30, 2007 compared to the three months ended June 30, 2006;
· Increased customer base to 117 as of June 30, 2007 from 89 as of June 30, 2006;
· Signed re-seller agreements with two leading Original Equipment Manufacturers (OEMs) of telecommunications infrastructure for distribution of TXP’s Optical Network Terminal (ONT) units;
· Signed distribution agreement with Eastern Telecommunications to sell ONT products and outside plant cabinet retrofit solutions;
· Launched 7200G family of mini-size Power-over-Ethernet (PoE) based Gigabit Passive Optical Network (GPON) ONTs;
· Completed detailed triple play interop testing with 10 leading Optical Line Terminal (OLT) equipment vendors;
· Obtained ISO 9001:2000 certification for TXP-Texas Prototypes and TXP-Retrofit Solutions groups; and
· Hired two key sales executives.

And how significant might this statement be: “We are very pleased with the rapid progress and major inroads we have made in the less than one year since we formed the ONT business after hiring the former Siemens ONT development team. We believe that our current success of interoperating with ten of the world’s leading OLT equipment vendors has proven that true GPON interoperability is already here.”
I think this statement is particularly worth noting: “ten of the world’s leading OLT equipment vendors”. These are NOT 10 small companies. The list of the leading OLT vendors includes some very, very large companies. And we already have working relationships with 10 of them!!!!! I think this is really very significant and represents the company telling us just what types of potential is there for the ONT business.
And Foxconn – they have already done business with us to the tune of a $5M contract in 2006. We will, imo, hear a lot more from Foxconn that TXPO shareholders will be happy about.
I’m convinced that PON technology is the future and is here to stay – there is no going back. We’re at the very beginning of this and TXPO is very well POSITIONED to benefit from this the coming rollout. I am more convinced than at anytime since investing following the announcement of the r/m into smkt that the potential here is huge and the risk really very low, especially given the growing strength of the prototype and retrofit divisions. I plan on being here when the serious Wall St. investment money takes notice of MS and TXPO. Shores seems determined to under promise and over perform” and I like that. If it means we have to tolerate being on the otcbb for a bit longer I can live with that.

lih