The trends of significance are in the third column:
(1) CPE revenues increased 5166% over last year
(2) Total revenue increased about 347% over last year
What is missing is the % of revenue due to CPE business.
It increased from 4.5% (1.1MM/24MM) to 57.5% (61MM/107MM) of total revenues. This is the trend we have been expecting to see. Now we know how much. Although current margin is dictated by manufacturing hurdles due to sudden ramp up in demand, it will improve in the coming quarters. The key is to focus on market share and compare with EFNT and others.
The percent is a relative term. An office assistant gets a 5% raise on $40K salary. A VP gets just a 1% raise on a $200K salary. Both amount to $2000 in real money. The percentage does not tell you the whole story. Elementary!
Ram
(Dollars in thousands except per share amounts)
Three Months ended June 30,
2000 1999(A) % Change
(unaudited)
Revenues
TAP $30,221 $13,824 119%
Transport systems 6,017 2,189 175%
CPE 61,880 1,175 5166%
Services 9,758 6,971 40%
Total revenues 107,876 24,159 347%
Gross profit
Equipment 20,477(B) 5,277
Services 3,650 2,228
Total gross profit 24,127 7,505 221%
Gross margin
Equipment 20.9% (2) 30.7%
Services 37.4% 32.0%
Total gross margin 22.4% 31.1% |
