Mark, well they have to go to the city with their engineers,and decide on what configuration is necessary,and how to implement it. Dallas has one headend and 40 nodes,and will be built accordingly. Each QAM channels will go to 10 nodes,and they need 4 wavelengths for 1310 nm narrowcast internet access. The broadcast analog with come from the headend and go out over 1550 NM to all recipient nodes,you have to decide how much demand,and how scalable the architecture has to be. Its hard to quantify necessary return path transmitters,from what they indicated. They are increasing the return path as necessary in TCI.Net areas due to the subs in the node for ATHM. You don't want to overburden each node,but you don't want to put too many return path transmitters that are not necessary.
I know they were beating around the bush,as Slocum and company tried to pin them down on next quarter,and when they would be profitable and what their gross margins would be. Well,it all comes down to top line growth,they have to get revenues over $20 million per quarter before they will be even marginally profitable due to increased head count. I am amazed they are over 300 employees so fast,after just recently hitting 250,and not too long ago,200.
Well, the Golden Channel revenue to Israel will not be recognized until the first quarter. TCI is the key,they said they have already shipped substantial product to them in this quarter,could not guess at how much they would ship.
Once they turn the corner they created with the buyout,which is starting to look like an unnecesary move,they will be profitable. But they need revenues of about 25 million,and gross margins in the high to upper 30's,preferably 40%.
Tim |
