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Technology Stocks : Efficient Networks Inc - (Nasdaq- EFNT) -- Ignore unavailable to you. Want to Upgrade?

To: Mark[ox5] who wrote (569)	10/21/2000 10:45:40 PM
From: Mark[ox5]	Read Replies (1) \| Respond to of 675

Comments on CC by "theme" My comments in parenthesis Topic: Revenue & Customer Base Q1 Revenue total: $127.2 International: $28.1 or 22% (vs $24.5 or 24% in June Q) [International would of been even better if not for traditional quiet August, look for improvement in next Q] Towards end of quarter and upcoming quarter CEO sees increasing penetration in a) Europe b) long haul carriers such as Worldcom, Sprint Projection for rest of fiscal year (through June 2001): comfortable with 20% sequential revenue growth each quarter (i.e. 3 quarters) When pressed in latter part of CC: comfortable with 20% sequential revenue growth through year end 2001 (i.e. 5 more quarters) [very impressive as most companies, especially DSL are having trouble guaranteeing 1 or 2 quarters out, especially at such high rates .. 20%] Customer list & diversification Top 10 customers are 88% of revenue, down from 92% the previous quarter Top 3 in both quarters are SBC, Covad, Hanaro Telecom Top 3 last Q SBC 38% or $38.7M Covad 20% or $20.4M Hanaro 14% or $14.3M Total 72% or $73.4M* Next 7 customers were 20% or $20.4M Top 3 this Q SBC 28% or $35.6M Covad 15% or $19.1M Hanaro 11% or $14.0M Total 54% or $68.7M Next 7 customer were 34% or $43.2M Next 7 include: BellSouth, Worldcom, Sprint, Aol, Telefonica, Belgacom, British Telecom [SBC drop off was only $3M, from $38.7M to $35.6M, much better than I had anticipated.. I had though somewhere in the area of $28M for the quarter considering the huge drop in installs for SBC. Customer diversification is much better than previous quarter, especially in customers #4 thru #10] $8.3 Million in Deferred Revenue Sold SDSL and software value add to SBC for first time this Q. Serve 13 PTT's in Europe Europe picked up at end of September Europe traditionally weak in August due to holidays in Europe. July and September strong; August weak. % of CLEC's as total of revenue approx 20% Saw no drop off of orders at end of Q from CLEC as response to analyst questions. CLEC concentration is Covad and Northpoint/Verizon Software not material yet as a % of sales. Could of sold more but component shortages limited ability to fulfill end of quarter sales. Long distance carriers are a new market, and very excited about this; especially important for VoDSL. Revenue mix: Residential to Business Has been around 70 to 30. Slight improvement on this in the Q. Goal remains 50/50. Analyst asked timetable for this; response: 1 year hopefully. Also CEO Floyd stressed this improved mix won't be due to lack of growth in residential side of EFNT business. Residential will be growing very fast (obviously) Analyst Question: Any new potential >10% customers next Q? Answer: Hard to answer; all of them could be. British Telecom we are doing well. SBC will be largest customer and continue to be. Analyst Question: How many customers did you ship to in the Q? Answer: Its a 3 digit answer. But we'd peg it at 32 major customers. Analyst Question: What % of revenue is from CLEC? Answer: Little less than 20% [implies Northpoint is only $6.3M or less, since Covad is 15% customer] Analyst Question: How many data CLECs do you serve? Answer: More than 4, less than 10