TXP Corporation (fka TXPO)

[jmack3265]

caddie/skidos: Ya, I own some TLAB and have been following it for some time now. IMO, TLAB is experiencing two separate issues, margins and sales. TLAB is also being squeezed on conventional transport equipment, or their 5500 cross connect series which is their bread and butter.

Appears that many of TLAB's customers (service providers) are closely watching the FTTX initiative to see how it pans out before making large CAPEX in transport equipment and upgrades. A good metric for TXP would be the number of sales of TLAB's 7100 optical network transport systems IMO. I also feel that Calix and others have been affecting market share. Probably learn a little more on the 23rd.

Should be interesting to see which occurs first, a buy out of TLAB (Nokia/Siemens, Nortel, other) or an announcement by TLAB with respect to their on going restructuring and a spinning off of their ONT business. My guess would be an announcement on the ONT's first. Either way TXP is in a good position. I just hope that when an announcement is made TXP's name is prominent in the announcement.
jmack