Some notes from the Q1/01 CC:
Announced New Contracts with Walmart, Kmart, and Sears, Office Depod fleet
Booking up 44%, Telxon included, 12% sequential growth
Record backlog, but mostly for 3rd and 4th quarters and beyond
Houston facility closed because of Telxon acquisition
DSO: 100-93 days. Target: low 80s by year end
Expect a robust YOY rev and EPS growth. Rev growth for the year will be between 25% to 30%.
Plan to cut staff by 700. Shifting more manufacturing to Mexico
Staff cutting will increase earning in 2H/01
Q2 should offer sequential revenue growth over Q1, but growth rate would be slower than historical rate.
Strategy
Drivers for success: patents, holds 620. 300 in pipeline. R&D. Wireless focus. Laser Sanner. Wireless LAN.
For Example: Symbol is 14:0 in patent law suits.
For Example: Cross IP sharing with Olympus
Q&A
*Any one time charge for restructuring and 700 lay off? No
*Growth for 01? lacking visibility to give specific numbers, but EPS and Rev should be guided down a bit from the old expectation..
*April was strong. Booking was strong. But these are for 3rd and 4th quarters.
*How much is business from the likes of UPS? Nothing of significants. Logistics is about 30% of total business.
*Europe? Talking to large super markets
*DoD? Slow Sales, but optimistic about it
*Relationship wiht Nokia, Ericy, and Mot? Supplied wireless LAN to Nokia. Ericy is customer of Access and NIC cards.
*Wireless Infra booking jumped very healthy.
*Backlogs are for 3rd quarter and beyond: These are special orders that require R&D and System Integration
*DSO: Core DSO were 85 days. Trying to bring Telxon DSOs down.
*Which verticals is concerned the most? Manufacturing is good. Retail shows opportunity after consolidation. Logistics will be buying less, but it buys in burst contracts.
*$12 million rev hit by currency
*Systems is over 60% of total rev, over 50% of which is wireless.
*57% business is done through channel
*Any thing up in Health Care and Education? No major order
*Telxon acquisition caused a 7 cent/share loss that led to about 5% change in Gross Margin. Should Q2 bounce back 5%? Possible, but all depends. Telxon should work out on the accruding side in 2H/01. *NetVision Phone, what's with next gen product? Have cheaper wireless gateways for PBX, should help a lot. Also doing wireless VoIP.
*What's up the Intel wireless phone announcement? Mid to end of 02, some high speed 5GHz wireless will come out.
*wireless access point modules will be released in 3 to 4 months to be integrated onto mother board or PCI card. |
