Oh, I thought when you said they are having a "painful product transition" in your 2681 post that you were basing it on something tangible. CSCC's rev in Q396 was $94 million. By the companies own admission ATM was 10-15% of that total (lets say $94 mill X .125 = ~$12 million. Now last quarter they did $110 mill in rev and said ATM was 20% total ($110 X .2 = ~$22 mill) So what I thought you were suggesting was that the almost 100% sequential growth in ATM business was something to sneeze at. My mistake. Do you think CSCC's competitors are doing better? The fact that competitors have low speed interfaces ready (i.e. T1) was news to me...thanks.
IMO, CSCC's ATM products are at least as strong as their competitors, all of whom, to the best of my knowledge also derive a substantial majority of their revenues from non ATM products.
Be that as it may, here is what Dan Smith said after earnings:
"In the fourth quarter, we believe Cascade shipped more WAN ATM revenue than any other company. We believe we are rapidly gaining market share in ATM. As a result of our recently announced acquisition, we also have added Sahara Networks' forthcoming broadband access products. We believe the addition of the Sahara products to our existing ATM products gives Cascade the broadest ATM product set for the wide area network."
"We have been especially pleased with the success of the CBX-500 ATM switch. The CBX-500 began volume commercial shipment during the second quarter of 1996 and by the fourth quarter accounted for approximately 20% of Cascade's total revenue. During the fourth quarter, we introduced OC-12 capability to the product, becoming the first in the industry to deliver carrier class 622 Mbps ATM bandwidth. In addition, we introduced T-1 ATM support for the 500. AT&T, which awarded Cascade the ATM backbone for its Worldnet Internet service. This is also a significant win for the IP Navigator product. The company has already begun shipments of the CBX-500 and the B-STDX 9000 product to AT&T and will begin testing the IP Navigator with them shortly.
Cascade has also been selected as the ATM backbone for a number of Regional Bell Operating Companies (RBOCs) and local exchange carriers, including NYNEX, Bell Atlantic-NYNEX Mobile, Bell Atlantic, BellSouth, and GTE. The CBX-500 was also selected for a significant expansion of the Worldcom network. "This order is noteworthy because Cascade will be used not only to scale the network to meet the growth in frame relay for Worldcom but also to provide a backbone for its existing ATM network
Does that sound like a company having difficulty transitioning to ATM?
Cheers,
Daniel |
