Sorry to say I agree with you, Pi. Kill the quarterly earnings with inventory, and built for whom? This makes absolutely NO sense.
He'd better have some good answers to that one.
If it's a simple 'lumpiness' that will not do.
Required commitment to the outsourcers? Hmm... not a good plan either.
Worried that as Covad and Northpoint take over more installations for the RBOCs, they'll use the cheaper internals and not us. This would explain the flat revs going forward even tho there is a ramp with the RBOCs.
And if he 'built to orders for Dec Q', yet guides low for the next two Qs, are they done building and just sell out of inventory? Sheesh.
We all knew the window for good earnings was about a year. Now MZ says half of that is crapola. Lowball so he can beat it in time to sell more options? Not a good smell, the street will treat him and us like dirt now. Thanks a lot, MZ.
Okay, if WSTL isn't going to buy anyone, who's going to buy us this next year? It's the only means to survive in this space, in the end.
Other thoughts, what was the product of the 'strategic acquisition' they pulled back from? (I'd been wondering why no proxies for the annual meeting yet, now they can just send last year's without changes... nothing special to vote on now.) Not DSLAM, I hope... maybe they pulled out because those blew up. Big guns will rule there, stay out.
Nothing good here. No kidding ourselves. |
