I just finished listening to the CC of Sycamore Networks which was really quite an interesting CC. Management spent a great deal of time 'speaking' before it was opened up to the Q&A portion. It was a very informative call - especially about the software side of their business.
They commented that components are in short supply in the optical business. Mentioned this a few times and it is why, like other companies, they moved to raise inventories to meet demand. This fits the theme of the optical networking company CC's I've listened to this Q. Once again, issues of capex spending going forward were addressed and they see nothing in their business that is different from 3 to 6 months ago. No slowing. They now have announced 10 customers which all received equipment during the Q. They also shipped to others during the Q, but have not formally announced who those customers were yet.
I've been working my way through all of the quarter's conference calls for the networking business around core, edge, fiber, optical [Cisco, Juniper, Redback, Sycamore, JDS Uniphase, Foundry, Extreme, Corning, Nortel, Lucent, etc...] to get an idea of the growth and what each company is saying about that growth.
Sorry to have jumped off the track, but my intent was to sponge everything in to see how it all ties in with semiconductor demand, optical components demand and networking gear demand because that effects some of our gorillas and kings. It's been one heck of an organized campaign that it was all over for these companies and demand was falling off a cliff - yet I see no signs of that in all of the companies that have reported. Nor do the companies. Semiconductors. Optical components. Fiber. Networking gear. Or at least I should say that nothing has been reported in terms of slow down concerns that matches that of the campaign launched saying capex was falling off a cliff. Time will tell - as it always does.
Did anyone listen to the Network Appliance CC? Or the BEA Systems CC?
BB |
