Replies to post #503 on TXP Corporation (fka TXPO)

[walterc]

Hi Walter,



Although we don’t provide “buy” or “sell” recommendations, here are some key highlights that may be helpful in your discussion. First, TXP’s ability to provide professional design support capabilities and quick-turn assemblies has enabled its customers to reduce their time to market which, in turn, gives these customers a competitive edge in an industry known for rapid product development. TXP increased its total customer served base from 89 as of the second quarter of 2006 to over 117 leading electronics and telecommunications companies as of the second quarter of 2007, which we believe is evidence of the acceptance and reputation they are building in the marketplace.



Additionally, one of the great challenges in the telecom industry is to affordably develop and deploy technology that terminates the Passive Optical Network (PON) at the home or business location, thereby reducing the infrastructure costs for 'fiber-to-the-home'--based services. TXP’s strategy is to become a leading ODM, by private labeling its Broadband Passive Optical Network (BPON) and GPON ONTs for both OEMs and Incumbent Local Exchange Carriers (ILECs). We believe this is well timed with the accelerating roll-out of new 'fiber-to-the-home' networks needed to deliver high-speed 'triple-play' services.



Here are some further highlights from the second quarter:



§ Revenue increase of 70% in the three months ended June 30, 2007 compared to the three months ended 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 interoperability testing with 10 leading Optical Line Terminal (OLT) equipment vendors;
§ Obtained ISO 9001:2000 certification for TXP-Texas Prototypes and TXP-Retrofit Solutions groups.

Let me know if there is anything else we may be able to assist you with.

Regards,
David