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Technology Stocks : Infinera -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (3761)	8/21/2018 3:26:45 PM
From: Tartuffe	Read Replies (1) \| Respond to of 4443

It is like the new footprint costs are absorbed by the vendor- What the vendor receives in return for absorbing the cost of the new footprint installations is a locked in future of high margin revenue as that revenue stream grows incremantaly with capacity increases over time. That is kind of hard to see compared to the old lumpy purchases of closed proprietary equipment that you had to rip out and replace with a truck roll. I expect the revenue stream will become much more consistent as a result. It also helps that the number of customers and applications have gotten much broader which will also help to even out the new multiple and varied streams of income. When you add Coriant's streams becoming higher margin through the vertically integrated cost structure, you have a weather system of potential profitability that might produce some serious surprises to the upside- Coriant and INFN put the chips down with R&D on flexible and disaggregated, and now that the two competitors at the cutting edge have joined forces, it will be interesting to see how Ciena, Juniper and Huawei respond- Maintaining service on Coriant's legacy equipment, and the challenges of integration are there, but the upside opportunity might have grown tremendously with the merger I think-