Re-Conference Call installment 2 .10/16/98 MORE COMMENTS
1999 REVENUES GUIDANCE=$2.1-2.2 BILLION WITH $2.40/S NET guidance.
Tellab's mgt. is not given to gloom and doom outlook and the view that this industry can afford to and should pull it's assets up over it's ankles, is not shared at Tellab's-said Mike Birck. There is a strong demand to increase bandwidth to customers and our customers agree with us.( Editor's note for the most part I'm quoting from CC. participants in this summary)
N. Amer. and Europe have robust sales. Tellab's is new in Latin Amer., but showing good increases, that won't abate. Asia Pacific is a problem, but Tellab's strategy is to move into telecom. infrastruture there, waiting for future sales.(Note,Asia is less than 5% of Tellab's total sales.)
NEW PRODUCTS
!. New double sized Titan will be released 4th ¼ with revenues in '99."Sonet based technology is not on it's way out" Customers are eagerly awaiting this big handler of volume traffic. It's volume of well handled traffic that is the most profitable.
2. AN2100 a ATM product will be out in 4th 1/4 with modest revenue. It will be the first in a family of new products, that will change landscape for us. Tellab's is and will be a real part of the ATM world. 1999 revenues are projected to be $50-100 million. Remember that Titan is more reliable to carriers than a new carrier solely based on packet cells. Calls can be restored in milli-seconds rather than longer down time.
5.Titan sales in 1999 projected to be one billion, not small change, and not a bad base to build on.
MISSION STATEMENT of Tellab's says"we will be a broadly based supplier of products, not just a 2 horse family." We will talk strategy and product continuum as we go along, said Mike. At upcoming San Diego meeting, look for new product announcements.
3.In 1999, DWDM products from Dr. Green's team, augmented by ex-wireless workers, will start to be introduced. These will be leader products and broad based.
4.Cablespan was $7.5m. this ¼,up 200% from last ¼. It's expected to be $60-100 million in 1999. New wins to be announced soon. UPC in Europe will announce contract soon, very significant. Look for 2000,000 lines in 1999. 6major customers with 6 others in trials.
5. Echo cancellors- broadrange of new products coming ...Voice over IP, ATM ..Sales expected to be $190-200 m. in '99.Tellab's Virgina in echo products expected to be world class domination in this market.
6. Martis which just started not to long ago is expected to be $460-500 m. in '99,up 20-25%. Sales to widespread Europe, Latin Amer. China Brazil etc.
7. Broadband transport manager, a all new product is to trials in '99 with release in 2000.
8.Little 532L is showing very strong growth with new features.
YOU GET THE SENSE THAT MGT. TEAM HAS BEEN ON BOARD FOR OVER 20 YEARS AND KNOWS HOW TO OUT THINK THE COMPETITION IN THIS FAST MOVING TELECOM. INDUSTRY. AND BRING OUT THE NEEDED NEW TECHNOLOGICALLY LEADER PRODUCTS.
Mike brought out the need to enhance stock value, so that they are in a better position for future mergers.
Mike's final statement was "A GOOD QUARTER, WHICH WAS LESS SUPRISING TO TELLAB'S MANAGEMENT TEAM, THAN TO YOU. WE ARE REASONABLY OPTIMISITIC ABOUT NEAR TERM AND A LITTLE FARTHER OUT(18 MONTHS).WE WILL FOCUS ON OUR ABILITY AT TELLAB'S TO INTRODUCE NEW PRODUCTS IN THE NEAR FUTURE.
WE WILL SEE YOU SOON AT VARIOUS VENUES AROUND THE COUNTRY WITH THESE ANNOUNCEMENTS."
Sincerely,
Again some one please post this of Yahoo string. That's a wild string over there with a lot of name calling and personal attacks, which I'm glad I don't see on this string.
DAVE DICKERSON
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