Occam Networks Sets Revenue Record in Q3
SANTA BARBARA, Calif., Oct 27, 2004 (BUSINESS WIRE) -- Occam Networks Inc. (OCCM), a supplier of innovative Ethernet and IP-based loop carrier equipment to telecommunications service providers worldwide, today reported results for the third quarter of 2004, which ended in September. The company reported revenue for the quarter of $4.5 million, an increase of $3.0 million over the $1.5 million reported for Q3 2003. Revenues for Q3 2004 set a new company record and represented a 205 percent increase over the same period last year, as well as a $1.3 million or 41 percent improvement over Q2 of 2004. Q3 2004 gross margins improved to 16 percent of sales as a result of substantially lower field return expense and growing manufacturing volumes.
"During the last quarter, Occam focused its efforts on growing sales, improving gross margins and controlling expenses," said Bob Howard-Anderson, president and CEO of Occam Networks. "As a result, we set a new revenue record for the company in a challenging environment. I am pleased with the company's overall execution and our strong financial showing.
"The product design changes implemented in Q2 of 2004 have improved product resiliency significantly," added Howard-Anderson. "The customers most affected by early problems with lightning-induced failures have shown their satisfaction in the improved designs by placing new orders in the quarter."
In the quarter, the company shipped the industry's first combination ADSL2Plus and POTS blade for its BLC 6000 Broadband Loop Carrier. Introduced at Supercomm 2004, the BLC 6252 is a 48-port ADSL2Plus and Lifeline POTS blade featuring ADSL2Plus and POTS on each port for optimal delivery of Triple Play services. The BLC 6252 has shipped to approximately six customers who have begun deploying the blades to deliver voice and high-speed data services. Four of these IOCs plan to use the BLC 6252 to deliver Triple Play service during the next six months. During the quarter the company also began shipments of the BLC6212, a 48-port ADSL2Plus-only blade.
"We are seeing strong market demand for IP Video solutions in the access network," Howard-Anderson continued. "From customer purchases to recent major RFPs, we are seeing a shift in the thinking of service providers that validates our vision of telco service delivery -- voice, high-speed data and video delivered over IP and Gigabit Ethernet access networks."
During Q3 2004, Occam added 10 new local exchange carriers located throughout the United States as customers. Many of these customers plan to use the BLC 6000 to deliver IP video and Triple Play services: voice, video and high-speed data. |
