Xylan conf. call (post 9)
Johnson, Robertson: Why VAR so strong? Appears something dramatic happened this quarter. Why?
Kim: We focused on VARS. Dale: Our sales guys more productive with wider range of products, and we got recognized better and better. We are going out there and creating this business. Xylan has built one of the best sales orgs. in NA. NYU Med. is a good example. Beat out a lot of competition. Past effort pays off this quarter. Why dramatic? We kicked their butts and our guys worked harder. Closed a lot of big accts. this quarter. Didn't experience much seasonality this quarter.
Shopec, Nutmeg: Existing relat. of 3COM/IBM? Corebuilder product line competition?
Kim: OmniSwitch sales at IBM exceeded their own internally developed stuff. They have not added much to their own product for a long time. Dale: A year ago, jockeying for position. At this point, 3COM has provided functionality into the IBM product. But IBM clearly sells our product under their label as a significant product. Kim: IBM is going to launch OmniSR as the gigabit backbone. Also, OmniSR has an ATM interface. They are aggressively pushing our fast ethernet product. So, the relationship is very good. Our emphasis is to increase our own direct, VAR business.
Tobia, Nationsbanc: You bought back 1.5M?
Dale: Avg. price was just under $20. Cash decrease is offset by buyback. Current liabilities up due to material flow, nothing unusual.
Weinstein, First Bost: Next year tax rate 34%. New ALA contract?
Dale: Coming down due to good tax planning. No min. vol. on ALA contract. Arms length. We passed on some favorable terms due to their volume with us. Unit vols. will increase significantly, with a modest increase in revenue stream. |
