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Technology Stocks : Sycamore Networks Inc-(SCMR) -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (1876)	2/14/2001 9:44:29 PM
From: Maverick	Read Replies (1) \| Respond to of 2249

Trials well underway for SN16K Opt Switch Excerpts from WR HamBrecht 2/14/01 From a product perspective, the SN 8000 long-haul DWDM transport system continued to make up the majority of the revenues while the SN 6000 comprised a modest portion and the SN 16000 optical switch contributed greater than 5% of revenues. The Company has shipped about 700 transport nodes to date to nearly a dozen carriers, and also indicated that a number of carriers deploy the SN 8000 for Metro transport applications. Sycamore shipped to 14 service provider customers and one international distributor, up from 11 customers last quarter. There were three 10 percent customers in the quarter including Williams Communications, who was higher than last quarter in terms of actual dollars but down from 60% of revenues to around 50%. The Company noted that its $400 million contract with Williams was over half completed, with another $400 million deal with 360networks, likely another 10 percent customer, less than half finished. We expect Sycamore to continue to expand its customer base by one to two customers per quarter and to establish stronger ties with its existing customers. On the new product front, the Company continues to gain traction as evidenced below: •SN 16000, the Company’s optical switch, comprised greater than 5% of sales in the quarter as CoreExpress, Storm and Vodafone were added as new customers. The backlog continues to grow and the Company expects that the SN 16000 will make up approximately 10-15% of revenues in this fiscal year, assuming component constraints are not an issue. The Company also noted that additional trials were underway in PTTs and IXCs, and if successful we believe would justify as a catalyst for the stock. The Company indicated plans to add high density (512 OC-48 ports) STS-1 grooming capability toward the end of fiscal Q3, a key factor in competing with Ciena’s CoreDirector product for near-term applications and achieving the goal set on the call of leadership in the optical switching market by the end of calendar 2001. •The SN 10000, the Company’s ultra long-haul DWDM transport solution will ship its first units of revenue this quarter as expected with volume shipments in the fourth quarter. We expect modest revenues from the SN 10000 in fiscal year 2001. In addition, management indicated this product has the potential to overtake the SN 8000 as a percentage of revenues sometime in 2002, although expressing some concern at smoothly managing this transition. •The SN 3000 and SN 4000 Metro SONET networking platform deployments with LDCom are well underway, although not yet recognized as revenue due to continuing customer acceptance milestones, and the SN 3000 is running live traffic. The Company indicated that sales were running ahead of plan with the potential to double original guidance of $10-$15 million in revenues in FY2001. The product remains in multiple carrier trials with additional customer wins expected as the year progresses.