To all: I have attended to-day's annual meeting in Ottawa. Compared to last year, the atmosphere was much more upbeat - in view of the annoucement of the BT deal and rumours with 3COMS.
As usual, the meeting was chaired by Terryl. He and Peter Sommerer both gave a presentation. The theme: All in the network and Moving toward a total solution provider. Here are some of the key points:
- Packet products (ATM & Frame relay) lead the sale's growth
- WAN products represent 40% of the revenue.
- Siemmens contributes 15% of the 1997 revenue
- Gross margin is about 60%, among the leader in the industry
- Paid $190 millions for 3 acquisitions, and only $95 millions for 18 affiliates (estimated market value now: $800 millions).
- Three affiliates are about to go public: ACC, Crosskeys, and Tundra.
- This is 10 year's anniversary for the company, employing 6400 worldwide.
- NN has $334 millions cash flow
- R&D is now top $200 millions, double that of 2 years ago.
(note: all figures in US$)
One shareholder asked Terry on the 3COMS deal, he replied he didn't know anything about it, cause he was in meeting all day. At this point Peter Charbonneau (Presindent and COO) stepped in, saying he heard about it, but can't comment on it...(almost denying there was any deal, but I may be wrong).
Afterwads, I asked P. Sommerer what he thinks of Gigabit ethernet - whether it could derail the ATM. He said until Gigabit Ethernet is fully developed and proven, he does not think it will. He went on to say that market timing is the key, and ATM is here and is working...
There were 12 affiliates showing and explaining their products next door. I was particularly impressed with Televitess - last year they were just talking about it, this year they actually showed the product.
JC
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