New Expectations.
When people have the time I would appreciate you looking over the following. I'm trying to create a document that keeps my expectations in line with those created by the conference call. If I've missed any thing, please let me know.
CC announcements (A) vs old expectations (E) vs new expectations (N)
Spin-Offs
Optical Access-
A- FOCI acquisition integrates active and passive components to address the demand for "rich features and functionality". JDSU is the only other company that has done this (between the lines - and look at their market cap!!). No growth in OA revenue. We will be happy with CEO choice.
E- Blow-out revenues from OA and CEO announcement. [MRV did not meet expectations in these areas. Whether it exceeded overall expectations with FOCI aquisition - too early to tell. Big question- Can MRV execute? ]
N- MRV now positioned to meet the 5X growth predicted to occur over the next three years. CEO announcement VERY soon - must be in position to take new OA entity public. IPO WILL happen after the merger (close 2Q) but definitely this year.
Nbase-Xyplex, Linux/Optiswitch Divisions
A- positioned for multilayer traffic management: Layer 1 - Fiber Driver, Layer 2- Optiswitch, and Layer 3 and above- OSR 8000 Linux Router. Ditched LAN products- Nbase is out, Red Sea is in. Now two potential spin offs. Red C in trials with 2 customers
, booked order with a third, beat out RedBack (implied RedC is better for certain but not all applications) Won project with European carrier. Impressive Caspian Sea 1500 km project (only $2 million?).
E- Revenue from above products [sort of met this expectation??]
N- Announcement regarding customers for Red C and Linux router (European carrier). New announcements pertaining to Linux at CeBIT. More info on Caspian Sea project. Optiswitch router w/ built in DWDM cabability announcement in "next few months".
Start-Ups
New Access-
A- received encouraging reactions from customers
E- revenue, status of Metrofusion [did not meet expectation ?]
N- "compelling value proposition" will pay off
Charlottes Web-
A- they are engaging customers (is this better than receiving encouraging reactions?), Araena 1 is currently in validation, customer trials to begin before midyear. Main application for router "likely to be high density traffic aggregation for carriers"
E- Terabit Router already in customer trials [did not meet expectations]; seems to be a difference of opinion here, Noam says on track, analyst implies 6 months behind??
N- Will be in customer trails first half and will take public ASAP. More info on "more features" that Noam wasn't willing to disclose - something that will bridge the gap between circuit based and optical based networks. MPLS 2 by July.
Zuma Networks
A- product is in validation, engaging potential users and Strategic Partners, new facility and new web site
E- Zuma graduates to Start-Up status [met expectations]
N- Strategic Partner Announcement
Hyporium
A- "building their European presence", completed $24 million round of funding
E- revenue and status of IPO [ nothing new but status quo is good in this case]
N- nothing new, IPO expected this year
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