Q4 CC notes :
Had to re-listen a second time this morning to get everything down correctly.
- Revenue came in at a record $79M, DR went up to $94M from $81M, and their "Shipped and Billed but not included in DR" category went From $9M to $12M. The composite for the quarter was really $95M, a major blowout.
- Net cash grew by $15M to a record $361M.
- The Book-To-Revenue was above 1 for the quarter and the year. Q4 was described as "Well North of $100M" and "Significantly above 1". I would surmise we can use something like $110M-$140M as a range, I wouldn't go much above that because they would have used something about being close to 2 in that case. Blowout, hockey-stick orders.
- Guidance is for revenue to be at the top of the industry range of 20%-25% in H12007, with Q2 being higher than Q1. No question they are being conservative, as it is 2/3 of the way through Q1 already. One of the slides said IP Voice Capex is growing at 25%-30%, not the 20%-25% they normally use, so possibly more to the market than meets the eye.
- IP traffic over Sonus networks now exceeds 30B mins/month, 4 times their nearest competitor.
- Expanded their recent comments about being involved with 4 of the Top5 operators in the world to say, "They Established or Expanded their position with 4 of the Top5."
- Level3 was a 10% customer, confirming our channel checks about expanding their Sonus-based network in lieu of the Viper network. Also IMO confirms we are carrying much of the core traffic for the MSO's, even though we are not yet present in their access networks in the US.
- Carphone Warehouse was the other 10%er, as that build picks up steam. Top5 customers represented 51% versus 71% in Q3, a broadening of the base. They booked revenue from Ten more customers in Q4 than Q3, 64 vs. 54, an incredible jump and likely evident of many new, un-announced customers.
- GM's at the high end of their target range, and based on the comments from LEHM they are already in their target OM range(mid-point) if you were to exclude the costs of the options review and restatement.
- Confirmed their presence in the Wateen WIMAX network with partner Motorola, IMO also confirms they will be part of every WIMAX win for MOT.
- Considers IP Voice penetration in the trunking market at close to 20%, something like 4-5% in the access market. The very beginning of the paradigm shift.
- Many comments about VZ. Highlighted VZ and KDDI as two recent success stories. Slide said VZ extended their Sonus network to carry more IP traffic in 2006, and represents an example of a "large-scale" deployment underway.
- Bert said they are building Sonus into the "de-facto" standard in carrier grade IP Voice.
- Expanded the T-Systems deployment to address ALL of DT's enterprise customers.
- Noted(I did) Cingular and ATT were listed individually as leading network operators deploying Sonus, but just hard to tell if that means CallVantage(only).
- Four congratulations from analysts, can hardly remember ever hearing one before.
- Said they had new customers from each theater included in the record order book.
- Employee count continues to ramp, from 817 in Q3 to 850 in Q4. Hassan said expenses will continue to grow at a slower pace than revenue in 2007, as they did in 2006.
- Comments on the competition are absolutely priceless. They basically have none.
Cooters |
