SCMR sold SN3K, SN16K to NTT
In terms of customer and new product traction, Sycamore began shipping the
SN10000 ultra long haul platform to KPNQwest, as expected, and recognized
revenue from a new customer(NTT) for the SN3000 metro and SN16000 core optical
switch to support ATM, IP and frame relay services. In addition, BellSouth and
Vodafone turned up service during the quarter, but we do not believe either was
a material contributor to overall sales. The company recognized revenue from a
total of 12 customers during fiscal Q4:01, consistent with the prior quarter,
including approximately five of the seven announced SN16000 customers.
Management expects Telecordia to complete OSMINE certification on the SN3000 and
SN16000 during the first half of fiscal 2002 and indicated that the 512x512
version of the SN16000 switch is now available. While we are encouraged that
the company has settled the component issues associated with the 512x512
configuration(low yields with existing VCSEL component supplier and lack of a
qualified second source vendor), visibility to a significant revenue ramp
remains limited given the early stage of trials and lengthening selling cycles
noted above. Our checks indicate that Sycamore has yet to significantly
penetrate Tier 1 accounts with these new platforms. The company's transition to
tier-one service providers has been extended by capital markets and structural
issues in services beyond the typical 12-24 month testing periods needed by
incumbent carriers before a firm order is placed for critical optical switching
and transport equipment. We believe such customer wins for next generation
Sycamore equipment are critical to the company returning to profitability at
current cost levels.
Long haul transport(SN6000, 8000, and 10000) accounted for over 50% of fiscal Q4
revenue, core optical switching(SN16000) accounted for over 10% of sales,
optical edge(SN3000) contributed over 10% of revenue, and network management
software accounted for the remainder. International revenue in fiscal Q4
improved sequentially to slightly over 50% of sales. We believe that customers
accounting for over 10% of quarterly revenue included NTT, Williams, and one
other international carrier and cumulatively accounted for approximately 70% of
total revenue.
By CSFB 8/22/01 |
