Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (34790)	10/18/2001 4:14:25 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68094

EXTR CC: -205 mil cash -running cash neutral right now -current run rate is break even -long term guidance GM 55, R+D 12 percent, G+A 5 percent - this Q GM 51 percent, R+D 15 percent - No forward guidance - North Amer B2B > 1.0 - North Amer declined to 33 percent down from 46 percent due to Sept 11 - Asia strong - seeing new wins in Europe, was a good surprise as usually slow in summer -ended Q with good backlog -reducing inventories in channel - 90 percent of sals through channel vers 86 percent last Q -tax rate 35 percent - DSO 43 days -Tightening expenses before Sept 11 -addition tightening coming - 4 mil in bad debt, all one customer - two 10 percent customers Q: Asia starting to roll over. Will Asia hold up? A: Expect Asia to return to normal next Q. Was strong this Q. We are a small player there. Japan has always been weak, this Q Nextcom was > 10 percent customers. Some large deals during the Q. Usually lump and large in Japan. True in China and Korea. Q: Bad debt? A: One service provider , Boradband Office, that wnet chapter 11. 1/2 of bad debt due to this. Q: Rev lost due to Sept 11. Lost forever or pushed out? A: Two weeks lost. Q: Write off in inventory? Destroyed? A: Aggressive product intro cycle. SOme products delivers 30 day early. Some device in inventory were obsolete as a result. Inventory in spares bin. Most ASIC so not usable by others. Q: Percent rev from GigE? A: Do not break out publically. Strong though. Q: New products? A: T1/E1 products doing well. 6816 doing well. T3 starting to ship. MPLS just starting to ship. Good customer reaction. Q: North Amer business > 1.0? A: Much higher than one due to drop off in rev. Overall over 1.0. Q: Before Sept 11, tracking like in June Q. A: As expected. Tracked like previous Q. Q: Large ILEC trialing GigE, any trials for EXTR? A: No comment on specifics. Believe deployments in 2002. No idea H1 or H2. Seeing more demand outside US than in US. Q: Differentiators? A: Our traffic shaping highly regarded. MPLS implementation so MPLS can be delivered at every port with changing blade. Good software offering. Q: Why no guidance since B2B greater than one? A: Good backlog. NO change in order patterns. Cautious though. Q: Bad debt effect on DSO? A: No major impact. Q: Education, service provider and enterprise strong? A: Education always good. Service provider and enterprise mix constant. Govt good but not huge. Lot of govt opportunities there though. General large enterprise market seeing progress. More emphasis on service side this Q. Q: Cash flow positive, how much? A: Working capital and operations. About 15 mil. Q: Balance sheet. Inventory down 16 mil Q-Q? A: 25 to 26 mil deferred rev due to channel accounting??? Q: Long term Sales and Market is 18 percent, how do you get it? A: Depends on rev. Materials 80 percent of cost of sales sold. Should see improvement going forward. Looking to hit targets in 18 to 20 months. Q: GigE percentage of sales. A: 30 percent overall sales to service providers. Most of those sales is GigE. Can use 30 percent. Most sales outside US. No detailed break out. Q: Asia long term 30 percent? A: Yes will come down to that range. Q: New competitors? Pricing? A: No material changes on macro level. Some deals very competitive. Pre/Post Sept 11 no big impact. Shrinking market few customers but also fewer suppliers. Q: Shrinking GM cost improvements, new products, mix. A: No overall reason. Due to control of materials. Q: Cash/Securities? A: 45 mil in liquid securities. Q: Shares out. A: Slight up. No dramatic increase. Q: Stack rev decline 20 percent Q-Q? Modular Flat. Business in Oct? CSCO competition? a: Modular usually 50 percent. Rest stackables. Some Q-Q fluctuations. Price pressure. Shift to GigE gives higher ASP. 10-100 business is layer 3. ASP stable. No comment on Oct.