My CC notes.
ps. Dave, I wondered whose baby was in the background. I was thinking it must be great to be a high paid analyst and stay home. (hah) They stated 3 times they expected deployment in 1998, volume deployment ramping up. This quarter would be looked on as the beginning of commercial deployment. Margins were down from 33.1% to 31.5% due to pricing pressures and product mixes. Sales and Marketing expenses were up 30% and R&D up 41% (this is +, I think). The WSTL/AMTX merger has been received by all enthusiastically. DSL revenue was up 161%, shipments doubled with 5,000 deployed and DSL revs = 4 mil (less than $1,000/system) Contracts: GTE Fed, BA-Carnegie Melon, QuebecTel, Japan co., John Buck Co. Tennent, Expect further announcements current and next Q. Over 17 year relationships with phone operators. "INTENSE" focus on ADSL from vendors, everyone is "talking" about it. They once again mentioned expect deployment 1998. Considering additional acquisitions, additional public announcements near future. The only time they have not won contracts, was when they did not have a DMT soln., that has been corrected. The S4 has been filed and antitrust docs filed by WSTL and AMTX should have their submitted within the week. 30 day review period and hopeful merger completion by Dec or Jan at latest. They will have DMT available near merger completion. Both sides interested in rapid closing. The other statements have been mentioned on previous posts. I thought they were conservatively optimistic. Kind of one of the "Build it and they will come." I did like their statements regarding WSTL/AMTX is and has been positioning itself to provide the best, least expensive product which will set all layer standars. Customers and shareholders are important. Bell Canada - no exclusive contracts (alcatel) and will not impact other markets. CAP and DMT products will have similar pricing. Also mentioned possibilities for public or private financing. Solidly positioning selves as the major players in the DSL market. I actually liked this CC compared to last, but I was really nervous and expected the worst. Thus pleasantly surprised. My nightmare scenario- "we will not be deploying until mid to late 98" DID NOT happen. Good luck. |
