CC Notes: Once more, long on talk, but the story is getting closer to reality. Revs. up 18%. Loss really (.16) after retirement 600K write off for Seamans. Margins up to 32.8% from 30.9%. Sales and Marketing and R&D both down 7% (hiring in house engineers costs less). Bell Atlantic 40 Mill access lines. FTEL $1 million order. GTE awarded them the prestigious quality award CLEC. Not being awarded GTE ILEC was disappointing. TELCO access, 6 service providers. Partnerships with LU, DSC, FTEL, TXN. 5ESS-ADSL later this year over 100 million access lines. TXN DSP/DMT chip sets. ADSL- slow emerging (No kidding). Lessons learned re. GTE ILEC loss: 1. importance of DMT,2. availability summer/fall 3. Frame relay, T1 4. Pricing
Questions regrading ICG - CLEC in Denver - Zionts alluded to this being 'common knowledge' although not announced and sounded like the was LU/WSTL. Bell Canada - initial phase, Flexcap II.
Bell Atlantic's game plan will be announced by them, still seemed on line with previous plans which were to begin "very soon" which means late summer or fall into 3-4th quarter calender year. Will have to place orders in advance, could be some impact on fiscal Q2 or calender Q3. International sales were 2.6 million (11%). "Expecting cable ramps to push our customers into deployment which of course has come later than expected (uh, yah). Two most aggressive ADSL deployers, US West and BA. Alluded to point that BA was going with WSTL and would occur later this year and also US West possibiltyies were mildly hinted to.
This was the way I heard it. I have mixed emotions about the call. Still looks like a quarter or two for numbers, lots of interest in ADSL currently which may drive the stock.
Mike |
