Q&A Session from the CC:
The names here are going to be best guess. All of this is paraphased unless quotes appear.
Sanford Berstein - When will the next generation of TNT be announced and Ship? What market effects do you expect? Number or percentage of ports that are VoIP versus data?
Mory - late this year on TNT. No market negative price effect of new product.
Bernie - we don't forecast by type of port.
Chris Stix, Cowen - Will the ATM exceed forecast? Become a majority of sales?
Mory - CBX550 could be both Frame Relay and ATM and high speed router, so ATM specifically not forecastable.
Michael - Core Switching will cross over in the 2nd half of 1998 and will be strong in Q2.
Everen - Is the recently announced GTE business a new system for them?
Bernie - Yes it is and the order announced is not the whole system. It will be joined with their other operations.
DMG - Frame Relay on the 9000 and the CBX? Comment on RFP activity and geographic regions?
Mory - RFP activity is Latin America, Europe with ATM and some Frame Relay, and Far East mainly ATM.
Eric ? - Price stability against bigger competitors and port expansion of LU/Livingston and NT/Aptos?
Mory - No price list changes expected. Will discount to large clients. as to competition, we competed against NT when they worked with Shiva, and Livingston has always competed with us. So this sense to be a continuing issue. Their margin expectations with the bigger players are not different then they were before, so again a non issue.
Matt ? - Remote Access in foreign sales force and ASND/CSCC intergration how is that going?
Mory - "We are working as one company at this point".
Joe Bellace, Merrill Lynch - Provide some color on the Book to Bill, both North America and Europe and the Japanese revenues?
Michael - Book to bill both around 1 for North America and Europe. Japan was about 10% of sales in Q1 with one major customer accounting for the increase.
Udoll Capital - Product Revenue summary again.
numbers were repeated.
Mory - ATM over SONET is where the backbone carriers are moving to as opposed to packets. GRF not adding density, does have OC-48, and adding features to address customer desires.
H&Q - We have heard that Japanese orders were pushed out or cancelled from your backlog?
Mory - we don't count orders without a ship date in our backlog or our book to bill. The demand is strong for our products and the Japanese orders we have are solid.
UBS securities - Name the customers over 10%of sales in this Quarter?
Michael - only one customer was over 10% of sales (would not name).
Bernie - Frame Relay and ATM volume of orders up.
CICB Oppeiheimer - 1) Order or Sales 2) Price stability 30 European seasonal softness
Bernie - Pricing has been better than expected. We watch the market and we did not need to make the type of reductions that we thought we might have last October ot November. There is strong market action for our products. We have accounted for European softness in our planning.
Nations Bank Monty - Europe as a % of Sales this Q? Revenue from Williams? GTE shipments?
Michael - Europe just over 10% of sales.
Bernie - ZERO revenue from Williams or any of the GX550 devices. GTE will ship later in the year.
UBS Securities - TNT share of sales within the Q? Shara and and other broadband products sales?
Bernie - TNT the majority of Access Revenues. Shara was up Q over Q.
Thompson Keragan - Bidding against Cisco and NN on major RBOCs?
Mory - CSCO has one alliance with a RBOC. GTE has chosen several of ASND products because they were the better solution. We don't want alliances, we do want to provide solutions to customers problems that addresses their needs. We have the best products and GTE, DT, FT, NTT and others are buying because they know it. The GX550 will move into the terabit speeds in the future, but no announcement date now.
Bernie - our major customers know our product developement plans, and they know we have what they want.
Next Question same person - Will you be doing any DWDM (Ciena type) products?
Mory - we are looking into that now.
Raymons James - International sales an increasing % of sales?
Michael - Should be higher due to implementation of CSCC products into the world wide joint sales organization. [CSCC only marketed to U.S.] Formerly ASND by itself had about 50% international sales. We expect 30% by year end and 40% in the future of foreign sales. [huh, growth]
Bear Sterns - MAX6000 going to marketed differently, directly to enterprise or to service provides than to customers?
Mory - To our service provider and than to customers. No change in strategy.
That is the end of my reporting on the CC. I look forward to the market's reaction. The replay is available at 1-800-475-6701 access number 386224.
Thank you for "playing what my stock"
Dennis |
