Stratex Networks, Inc. (STXN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Stratex Networks, Inc. (STXN)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: akmike who wrote (1249)	1/11/2001 2:55:39 PM
From: Rob Preuss	Read Replies (2) of 1762

Mike, Your expectations on gross margins are too high. Here's an excerpt from my Q2FY01 Conference call notes: >Gross Margins Q2 FY01: 31.6% >Gross Margins Q2 FY00: 30.1% >Gross Margins Q1 FY01: 35.2% > >We expected margins to decline from the previous quarter due to product mix, >customer mix, and factory costs we’d incur as we focussed on ramping production. >I’d expected about a 1-2% decrease, however Spectrum II revenues were higher >than anticipated as we shipped additional product to satisfy critical customer >needs. In addition, we incurred additional costs in San Jose and Seattle to >increase production levels and expand capacity. Also margin on service revenue >was lower his quarter as we expanded staffing and increased some of the base >costs in anticipation of a growing service business going forward. I do expect >to see an increase in margins for Q3 of about 1% to 32-33% an another increase >in Q4 to 33.5-34.5%. Although somewhat lower than prior estimates for this >year, we believe our long-term financial model with margins of 36-38% is still >appropriate as the manufacturing process, supply chain, and yield improvement >programs we’re currently working on produce results over the next 12 months. And here's an excerpt from the notes I made following a telephone discussion with STXN's VP of Marketing and Sales: >Shawn confirmed for me that these ultra-high-capacity >products will likely have higher margins than Altium. >Moreover, he felt that the sale of these new products >would NOT cannibalize their Altium sales... they are >more-or-less complementary to the Altium products... >For example: a customer using several Altium or DX-R >radios (e.g., to reach a client's building) might >need 1 or 2 of these higher-capacity products to >carry all that data back to a fiber facility. So >my guess is that, 12-15 months from now, they'll >sell 15 OC12 (622 Mbps) radios and 30 OC6 (311 Mbps) >radios for every 100 OC3 (155 Mbps) radios they sell. I recommend you read all these notes... Q2 FY01 Press Release Message 14600654 Q2 FY01 Statement of Operations: Message 14600667 Q2 FY01 Conference Call Summary: Part I (Financial) Message 14618537 Q2 FY01 Conference Call Summary: Part II (Operational) Message 14623465 Q2 FY01 Conference Call Summary: Part III (Outlook) Message 14631707 Q2 FY01 Conference Call Summary: Part IV (Q&A) Message 14641795 Notes from conversation I had with STXN's VP Marketing Message 14715039 Text summary of STXN slide presentation at AEA Financial conference Message 14738594 Rob

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next