Just listened to the OCPI conference call. The number will be available for two weeks at 800-642-1687 - request conference number 617706.
CEO Tran does have a bit of an accent, but I thought I picked up 2 disturbing points:
(1) Cisco, which I understand has been a 35% customer, dropped to less than 10% of sales, and will be "inconsequential" in the future. We know Cisco has problems, but they've said their metro DWDM products have been selling well. It sounds like Cisco has dropped OCPI as their supplier !! Another possibility is that Cisco just has too much inventory, so they won't be buying in the future until they burn it off. However, I'm disturbed that I thought he said "sales from Cisco will be inconsequential in the future" which sounds like Cisco will not be coming back. Amazingly, none of the analysts asked him anything about this.
He says other new contracts will make up for it, but losing a 35% customer is never good, no matter how you spin it.
(2) He said revenue growth will be down about 24% next quarter, and flat the following quarter. This is similar to what other long haul companies are projecting, but NOT what you would expect from a metro player. ONIS, for example, actually increased sales for the following quarters, and projects continued sequential sales gains.
Again, I'm not exactly sure I heard the CEO clearly. I would greatly appreciate it if others could listen and post - to verify the above, and maybe pick up more info I missed. The first 10 minutes of the call, they just spit out the numbers. The next 10 minutes is when the CEO discusses the state of the company, and that's where the above info comes from. |
