Harry --
You know more about the company's history than I do. From what was said yesterday, the company sees their Tellium stake as a key asset. (Tellium currently shipping on $250 m contract with Exant for LU.)
They're clearly moving away from HFC to the telecom side of optical networking. They've jettisoned the unprofitable sides of the business, taken a one-time charge, and as part of the reorganization tripled sales and marketing. Semiconductor fabrication is a core competency. (Build lasers and crystals) Around the core is RF predistortion, fiber coupling, and subsystems engineering. Their plan is to build more modules and components. Photodiodes will be up 400% by the end of the year. Building transceivers for OC-192. They're moving from being 85% in broadband HFC where growth is in the 25 - 30% range to highspeed telecom where growth is 75-80%.
Rizzone admitted they'd missed the DWDM backbone market and won't play catch-up. Instead, they're focusing on the metro market. He also mentioned having fiber products for the 10 gig ethernet market. "We'll partner with major networking companies."
As for financials, he said he's comfortable with analysts' estimates of $19 million and .02 for Q2. Company has $25.9 million in cash, are cash positive (and going up), with no debt. They're currently in qualification testing with 5 vendors, all names I would recognize. Hockey stick growth one year out.
Since I'm just beginning to explore this company, let's keep the dialogue going.
Pat |
