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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (4751)	7/19/1999 9:23:00 PM
From: Frank A. Coluccio	Respond to of 12823

Is this possible or did I hear something wrong? Mike, I can't vouch for the actual numbers which you cited, but what you're dealing with here is nothing short of a razor and blade model. Only, with Central Office mainframes like this you can add annual maintenance charges, too, which probably fall under the same revenue line. Logic, controller- and high- capacity OC-x ports run into very big bucks per. Carriers will usually purchase a system shell, with the bare minimum number of cards to get them off the ground and meet initial cutover and foreseeable growth, plus a % for maintenance spares [although, you couldn't prove that by me, lately, with all of the missed appointments and scheduling delays I've witnessed in the recent past due to DCS and ADM port shortages] and then they proceed to do just-in-time provisioning, more or less, from that point out. This is a part of what accounts for the egregious 90 and 120 day "normal" implementation cycles (which sometimes extend up to six or more months in certain areas) for T3s and above. The numbers don't surprise me that much. Regards, Frank Coluccio

To: MikeM54321 who wrote (4751)	7/19/1999 9:23:00 PM
From: Charles R	Read Replies (1) \| Respond to of 12823

Mike, <I just picked this off the CC for Q2. TLAB said port cards represented 2/3rds of overall Titan sales. > Can you post the conf call number? I would like to listen in before I comment. Thanks, Chuck

To: MikeM54321 who wrote (4751)	7/19/1999 11:57:00 PM
From: Charles R	Read Replies (1) \| Respond to of 12823

Mike, <I just picked this off the CC for Q2. TLAB said port cards represented 2/3rds of overall Titan sales. Is this possible or did I hear something wrong? They also broke out exact figures for Titan. I'm afraid I didn't jot it down. Anything meaningful you can get out of the port card statement?> I heard the same thing that you heard. Some additional numbers: 2Q total - $540M; Titan - $319M; Martis DXX - $90M; Echo Cancellers - $57M; Cablespan - $17M Titan was driven by wireless numbers which covered up some of the slowing down growth in traditional CO market. The biggest negative is the Martis number. I had high hopes for Martis and I should say this is like any other developing world story - product ramps are painful. I like the company and management but continue to remain on the sidelines because of my concerns about the companies ability to deliver the growth rate to justify the valuation. In my experience, companies typically have a problem establishing a new revenue stream outside their core area (Titan or cross connects in Tellabs case). Can Tellabs do it? Would be a great story if they can. Chuck