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To: Paul Winston who wrote (8223)9/4/1998 10:32:00 PM
From: Grantcw  Read Replies (2) | Respond to of 10479
 
I still don't understand the evaluation procedure for the Gigamux. There are 3 phases, right? Each phase = 4-6 months, right? So why has there been about 6 evaluators in phase three for over 6 months? Am I mistaken on this point? I'm pretty sure that we've had some phase three evaluators for the last two earnings reports. I wish I cared enough to go check it out.

Anyways, assuming I'm right about this, why have there been phase 3 evaluators for more than 6 months?

Grant



To: Paul Winston who wrote (8223)9/5/1998 11:18:00 PM
From: David Wise  Respond to of 10479
 
You misunderstood a couple of points. They have always said the sales process for GigaMux is approximately 18 months. See the press release for a breakdown of each of 3 phases. It's something like 14, 21 and 16, with 16 evaluators in the last phase.

The other point is that some customers will require more than one "unit". Of course they can also buy units with fewer signal splits or more splits, so the sales price varies.

On the conference call they said that one of the new customers may require as many as 8 units. There are also additional tie-in products and services for additional revenues.

It would be interesting to know what the average sale size is expected to be for each phase of evaluators. I'm waiting for the one that needs 200 units and additional tie-ins or services. Could happen! More likely though is that some customers will start small and add on as demand or comfort with the product grows. But this is expected to result in steady growth as customers are won for the long haul.