Upbeat conference call on "great quarter" (multiple analysts' words) archived here:
corporate-ir.net
1. Good mix of customers discussed (Cisco, Alcatel, EMC, Tyco, Molex, Fugikura, Lucent*, Brocade*, TellLabs*, Village Networks*, JDSU, Correli, ADC, Bookham* (* New customers identified by name.) Individual orders mentioned from Lucent and TellLabs were from $1.5m to $4.5m.
2. IRS ruling was requested 6/23/2000. Response was expected to be issued roughly 6 months or perhaps somewhat later, making it late December or January. Distribution to METHA shareholders w/in 3 months after that.
3. Re: Cisco, STLW has no indication of let up in orders, which come in by quarter.
4. Re: STLW's optics components, company foresaw need and pre-ordered sufficient components.
5. Re: Fiber channel, in the last year growth more dynamic and 'exciting' than gig ethernet. But possibilities of using 10 gig ethernet in the 'last mile' also forecast to be possibly 'exciting' down the road. Other alternatives for short length transmission technologies discussed near the end of the call.
6. Re: Lawsuit, preliminary opinion of counsel is (predictably) 'no infringement' + 'no valid patent.'
7. Re: Pricing pressures on product sales "quite relaxed" and lower now compared with a years ago.
8. Re: Stratos Semi-conducter, still expect accretive to earnings in about 6 mos., as forecast during IPO road show. Drag on earnings has diminished from ~ 3 cents to 1-2 cents.
9. Lead times in filling customer orders has been successfully shortened to 6-8 weeks, which management says is optimum.
10. Order numbers in November up 10% from September - October.
11. Since close of the quarter "substantial progress" made in DSO business.
12. Re: net margins, guidance for 2001 is 10-12%, up from 10%. Long term goal remains 15%, but management declines to say if it will be achieved in 2002.
13. Gross margin guidance through the balance of FY remains 33-34% range.
14. Other customers referred to, but for competitive reasons management would not identify them except to say they are among the 'newer, larger optical networking' companies. |
