I can't think of any other equipment company that
surpassed $90 million in their first five revenue quarters.
Bill, Ciena did $100 million in the first quarter as a public company. Quarterly revenue went from zero, to $50 MM, to $100 MM, the quarter stock went public. It did many hundreds of millions in the first year.
Like RBAK, JNPR relies on few ans same customers. In Q1, 40% of JNPR's sales were generated from 1 customer, UUNET. I did not listen to the Q2 CC and have no idea how that number has changed. RBAK generated 43% of sales from UUNET in Q1/99, but less than 10% in Q2. Fortunately, RBAK was able to place several systems with new customers thus masking the 65% decline in sales to its largest customer.
CIEN stock tumbled 90% in 3 months when its largest customer (Sprint) decided to buy from competitors. The point is with only few customers, revenue can fluctuate significantly quarter to quarter, and stock price will suffer. Watch out!
Another point of caution, both RBAK and JNPR are one pony companies. JNPR has one and only one product.
Regards,
Tom |
