CC:
Ashby:
292.5MM rev is 8% up from prior q. RAS down 8%, ATM up 24%, etc. Svc revenue up 13%. NA sales up 12%, Intl down 2%
RAS was 43 perc.
Core 32pct.
other
Intl 27 pct.
NA the rest
RAS:
Growth in NA from carriers and mid-size ISP. Still, slowdown in NA, growth in Euro. Continued weakness in SE Asia due to delay in TNT and Asia in general. Dont expect growth in this region in 2H at earliest.
In core systems, ATM grew 75% Q over Q!!!! Very pleased for this going forward.
Intl: Euro was 14% of core, up 11% or so, Asia down a bit, tho Asia excluding Japan was up a bit. Carriers represent growing perct. of business, 49% of revenue in Q4.
Gross margin: 64%, same as prior q. Tho RAS is competitive, pricing remains steady. Further price reductions are likely, but won't have signif. impact on gross margins.
Margins on core sys. are higher than RAS, so, as core increases, this helps our entire margin.
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