Paper, the thing is it does not matter whose platform you use,HLIT's MetoDWDM is interoperable with all silicon and physical layer chips in the cable industry. TCI has pledged they will spend at least 500 million by the time of the merger,they spent only 5 million this quarter. They have two quarters to either get their act in gear or fail to perform once again.
Well HLIT has had good and bad fortune,good that they had strong sales when TCI cancelled contracts in 1996,bad this year when Asia collapsed. But then again, now they are picking up domestic sales,and European sales.
I wonder how much effect the turmoil in the UK cable markets had on buying there. There have been mergers and acquisitions,and change in service areas. Three clients reside there,and I bet they delayed contracts this quarter also.
The cable markets are in turmoil around the world,they have the opportunity to dominate broadband access in the next millenium if they can get their act together.
Well HLIT has at least 5 new contracts in the last few months,one to TCI for 14 cities,100 communities,one small one with COX for Palos Verdes,one with NECSY for satellite systems in Scandinavia,one with Hungarian Telecom for wireless cable,one with the largest Israeli
cable company. They have focused now on sales,and have the sales staff of GIC working for them through the head of sales and North American sales. Small companies sometimes struggle as they grow,and I like to watch the struggle. They now have over 300 employees,two years ago only 100 employees. If they maintained the same eployees base they would still be profitable,and not growing.
Hey well I think AOL,YHOO et all are all worth only 10% of what they are selling for based on today's revenues. We do not base things on today,but look toward tommorrow.
They had to ramp up new production,and new products,lets translate those into sales and earnings.
Tim |
