Thanks for the excellent rebuttal.
One of your quotes from VZ's Q report is very interesting but raises a few additional questions.
"Verizon is currently installing approximately 2,500 DSL lines a day --double its June rate -- and aims to have 500,000 DSL lines in service by the end of the year."
This sounds like excellent news for the future revenues of WSTL. The month of July was double the month of June.
So August and September should also be double last Qs rate of deployment. But,we now have to factor in the lost of deployment due to the strike. So far, we only lost 5 days of this double deployment due to the strike. If the strike can be resolved within a few days(say in the next 5-10 days), WSTL's revenues from VZ should still show explosive growth in the next reporting period. If, however, this strike continues for more than three weeks, WSTL's projections will probably fall short for the next Q. Even if the worst case scenario comes to past (a strike lasting more than a month), the negative results on WSTL revenue should only impact next Q. And if that did happen, we would
would probably see a larger than anticipated 4Q.
Did WSTL's factor in this explosive growth at VZ when they projected the revenue for 3Q? If so, they will have to revise these estimates if the strike continues for a significant length of time. |
