Actually it was the replay that I listened to. It's usually easy to call or email Trimble IR for the number and code. The replay runs for about 5 days, starting just a few hours after the "live" call.
Let's see, interesting stuff... It seemed like there were a lot more people asking questions this time (eight to be exact). Here are some Q&As from my notes:
Q. Is machine control still experimental. A: it's now $2 million/month
Q: how is Lockheed contract structured. A: it is a "production contract"
Q: which is bigger, GIS or survey. A: survey
Q: about CUGR. A: CUGR is on track
Q: 30% growth rate? A: "Volume growth rate is greater than 30 percent. Industry is in consolidation, which quarter top line jumps 30% I don't know"
Q: any problems like DATM had. A: no push out seen, most pay within 45 days.
Q: CDMA and timing. A: In conventional cellular, requirements for enhanced 911 can be meet by timing/synchronizing base stations, or by putting GPS in handsets. Either way involves GPS. [my notes have "2000-2001", which must be the target date for e911]. "Increased capacity is driving clocks on base stations". "We expect a good timing business".
Q: About delayed 3rd q CUGR shipments. A: sounded like in the 4th Q, both the delayed 3rd Q plus the regularly scheduled 4th Q CUGR products will ship. So, there would be 5+5=10M revenue.
Q: Survey market. [recall that survey was down 25 percent due to new product introduction]. A: Not expecting survey to be flat with respect to 3rd Q based on order rate.
Q: Japan, is there a target date? [recall that Japan GSI has not approved RTK]. A: Trimble said that Japan works around a fiscal year that starts April 1. So, he figures that any announcements would be made at that time. [it is surprising that he said this, but] he forcast April 1998, remove barrier to RTK and April 1999, embrace RTK. Further he said that testing is going on now using the earthquake network [that Trimble has supplied].
Q: more alliances? A: [they never say]
Q: About the new 4800? A: If patterns are correct, should be a major product. Millions/month. There are fewer options... not something configurable, so can use normal distribution. 4400 was a price-point product, targeting land survey market. 4800 is new ergonomic design, will take bulk of land survey market. 4800 will not affect 4000 sales.
Q: about CARiN being sold at circuit city. A: We supply engine for CARiN
Q: more about car nav market. A: Of $2500 car nav unit, $75-80 is for GPS unit, chipset is $30. Our goal is to have "reference design"... have (better) 2B fabs make chips... all Trimble has to do is resell them.
Q: about resistance to shut down Omega, is Omega a threat? A: Resistance is not in commercial market... resistance is political.
Q: Competition. A: Trimble still sees a shake out, with the 10 or so companies today dropping to 3 or 4 major players. [For another question, Trimble said that "the industry is in consolidation".] |
