Some quick notes from the conf call: Q1/00 revs guidance: up in low-teens percent sequentially, gross margin about as in Q4/99. Spreng used the term "challenging". Q2 has low visibility, but should be better than Q1. At 12/31 only 40% of Q1 revs were booked, less than they would like.
2nd half of 2000 should be very good as new Cisco products containing MMCN products will ramp (Cisco models 2948 and 2908, if I took notes correctly). Momentum should be strong into early 2001, not the less because of easier Y-o-Y comparison.
NT was 18% of sales in Q4/99, NT business looking very good going forward. Other tier 1 customers he did not name, said that discussions with LU and another (forgot) were ongoing. LU may ship products with MMCN content in the 2nd half of 2000.
Cisco still has too much ATMS2000 chips in their stocks, which is a high margin chip for MMCN, until this backlog is worked off at Cisco, this chip will do nothing for MMCN in the near term.
CFO search is ongoing, several interviews being held.
DSO are 49 days. Headcount at 12/31 was 197, up from 185 at 09/30. A new design center will be put up in Raleigh VA with 6 former IBM engineers joining there.
Many new design wins. Won 31 designs in '99, 16 more than in 98 (I could be messing up the nos. here, but wins in '99 WERE strong).
Overall, the future looks good, but Q1 and Q2 will be a bit of wait and see (my interpretation that is).
The replay# is 402-530-7679, ID:6873516, until the 25th.
I will continue to hold long, rather thinking of adding eventually.
regards,
Thomas |
