Not to belabor the point, but the Red-C announcement was pre market open on April 3rd - the earliest in Q2 they could announce.
Anyway, let's look at that announcement again:
"MRV Communications Inc. (Nasdaq:MRVC - news) today announced that it has delivered its first large revenue order of the Red-C Open Subscriber System (OSS) to a leading service provider. "
What is "large revenue"? Well traditionally anything less than $1 million was usually referred to as "not significant" in past CCs, so it must be over that. The use of the term "large" is new to my following of MRVC PRs, which I was very glad to see. I don't remember them ever using that word in association with a revenue order.
Now, RBAK's ASP for their products (combining both the 4-slot and 16-slot boxes) is about $65,000 per box, so MRVC's must be near that.
Since the term "leading service provider" is used, I bet more of the 16 slot boxes were shipped. RBAK's ASP for the big box (w/o options and accessories) was over $100,000, so MRVC's boxes must be close.
Then, if the boxes are near maximum configurations, I bet these average over $150K each.
My guess is that this order represents at least $5 million, but that is purely a guess, based on the above.
Oh, BTW RBAK's margins were 70% and MRVC would be foolish to sell the boxes much lower than that, given they spent all of 1998 and 1999 saying they understood they had to raise margins. But I'll use 60% for figuring purposes.
So as a pure guess, $5 million * 60% = $3 million (or about 10 cents/share) pre tax revenue.
Even if the order is just $3 million, this yields about six cents pre-tax. In any event, this should be a nice add-on for Q2.
As "prop up" PRs go, this was pretty significant, IMO <g> |
