Clips from an interview with Matthews later in that same newspaper:
Matthews: "We have a considerable lead on our competitors, that's why you see the company doing very well in ATM, that's why you see us winning tenders that have a big impact on the future."
writer: "He says a 'high percentage' of the top 20 carriers around the world have done what BT announced, they just aren't going public with it yet."
"Not only are the Mainstreet products and the MainStreetXpress products developed with Siemens replacing communications cores, Newbridge and ATM are rocking the core of the communications carriers themselves.
Traditionally, carriers have seperate business units complete from management to support and sales for things like voice, long distance, frame relay, Internet and ATM. Now they are realizing that one team and one technology can support all their needs, says Matthews and that results in incredible economic efficiencies."
Matthews: "We have lots and lots of clients who have bought Newbridge ATM for frame relay and only frame relay and now our job is to capture the other services off the same platform...this is a no-brainer with respect to the decision to do (ATM) because the savings are so great."
To me, the above validates my earlier hypothesis that carriers had before only been dabbling in ATM, and are only now diving in in a big way. As for the "high percentage of the top 20 carriers...", was he implying their going for NN solutions? I suspect yes.
I'm starting to feel that my valuation analysis to-date has been far too pessimistic. By increasing my conservative growth rate assumption, I start to see a case for today's stock price.
Despite my earlier worries about valuation, I am going to add to my looong term position today. This is NOT a recommendation...this is a personal decision based on the stunning developments of these past few weeks. The stock may falter in the near term considerably, but I can't predict that. I only know that this is my ride, and I'm buckling in for a long, hopefully profitable trip.
Andrew |
