Conference Call details:
This is what I thought I heard being said. (I came on late)
1. Goss Margins were 65% which is at the high end of their model and the same a 3Q96.
2. Accounts Receivable increased to ~70 days. That was a 20+ day increase and is higher than their model. They look for it to move back down to model range 50ish. I did not catch why this occured but they did mention the quality of their customers is good. (and they will collect)
3. Cash position increased 12% in quarter to $112 million.
4. Market Research called for 50 growth in FR in 96. Their FR business up 125%.
5. I understood them to say NN/CSCO competitive position has remained constant or declined relative to CSCC in 96.
6. "Especiall pleased" with CBX 500 ATM. They are #1 in ISP ATM and have goal of #1 in carrier ATM this year. CBX went from 10% of revenues to 20%. Customers requesting OC48 interfaces which they are developing.
7. Over 300 customers now. Wins (I think ATM) were AT&T, Nynex, Bell Atlantic, GTE, NTT, China Telecom, WilTech, Vsxyx? (instead of CSCO implied), Savvis this Qtr (instead of Fore), China Telecom.
8. 30 AX's being evaluated. 35 now shipping (some w/live customer traffic) I don't think in revenues were realized for AX's in the quarter. The goal is double digit share of remote access market by year end.
Less than 10 customers for AX at moment.
9. Sahara product is far enough along that they are bidding RFPs now. SA 600 & 800 will ship Q2 and SA 1200 in 3Q. Very excited about Sahara and IP Navigator.
These are from my notes which may not be 100% accurate but I tried. In general, I think managements tone was confident but not cocky. In many ways, the quarter was like ASND's. That is to say, they are in transition. Analysts tried to pin them down on ability to grow. All they said was they were not uncomfortable with Street models of 97. They said, in effect, look at research figures for FR and ATM growth and we expect to do those numbers at minimum. They reminded that Arris/Sahara products doubled the opportunity and that they have very good relationships with their customers.
If I had to guess, I would say we are going down some tomorrow. If so, I will likely buy more.
Cheers,
Daniel |
