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Tanskript von CC (Link: www.advaoptical.com/-/media/...earnings-call-transcript.ashx)
29:28 Tim Savageaux (Northland Capital Market)
Hello. A couple of questions from me. I guess first, as you consider your guidance for high-single digit revenue growth in calendar 19, to what extent does that contemplate increased traction on the cloud side from new products? You mentioned the TeraFlex or is significant new traction there? Does that represent upside potential to your targets or what are your overall operating assumptions with regard to reaccelerating growth on the cloud DCI-side?
Transkription, ADVA Optical Networking, EV00086044
6
30:15 Protiva
So, good point, you know the size of the ICPs, we sell to four of them, different types of products, if we win one or two or three of them with our TeraFlex type of a product fundamentally you are going to see much higher growth rate, because any one given win can represent a 10% increase in our revenues, on its own. So how we put together the forecast is really based on momentum we have seen in 2018 ever evolving, we have holistically upgraded, and I said it very clearly in my presentation, holistic upgrade of all our products in each segment. Our tripod is getting stronger, you will see strong growth coming out of synchronization, so you are going to see there another nice uptick, much faster than average growth, packet edge we are doing very well, and our virtualization strategy is market leading, we won major customers, we probably have eight or nine or ten already, we have major channels pushing that. And then we have some of our new optical pieces like some of the OLS, TeraFlex and some of our carrier base and things like that. So the growth rate is very much evolutionary based on what we are seeing over the last 12 months and moving into the market, there is much more upside, but let’s not count our chickens before they hatch. We are building a business and I think we are doing all the right things to get better stability, better average gross margins, less dependency on the optical cycles, and very good breadth. See our less than 10% - we don’t have a customer that we have to name as a 10% customer. So I think all the pieces are being put together for really good stability and then there are a bunch of break-out scenarios that we could go through at some point, including one of them is the ICP break-out based on TeraFlex, but there are a number of other stories that we have that we are pursuing that are pretty hot right now.
29:28 Tim Savageaux (Northland Capital Market)
Hello. A couple of questions from me. I guess first, as you consider your guidance for high-single digit revenue growth in calendar 19, to what extent does that contemplate increased traction on the cloud side from new products? You mentioned the TeraFlex or is significant new traction there? Does that represent upside potential to your targets or what are your overall operating assumptions with regard to reaccelerating growth on the cloud DCI-side?
Transkription, ADVA Optical Networking, EV00086044
6
30:15 Protiva
So, good point, you know the size of the ICPs, we sell to four of them, different types of products, if we win one or two or three of them with our TeraFlex type of a product fundamentally you are going to see much higher growth rate, because any one given win can represent a 10% increase in our revenues, on its own. So how we put together the forecast is really based on momentum we have seen in 2018 ever evolving, we have holistically upgraded, and I said it very clearly in my presentation, holistic upgrade of all our products in each segment. Our tripod is getting stronger, you will see strong growth coming out of synchronization, so you are going to see there another nice uptick, much faster than average growth, packet edge we are doing very well, and our virtualization strategy is market leading, we won major customers, we probably have eight or nine or ten already, we have major channels pushing that. And then we have some of our new optical pieces like some of the OLS, TeraFlex and some of our carrier base and things like that. So the growth rate is very much evolutionary based on what we are seeing over the last 12 months and moving into the market, there is much more upside, but let’s not count our chickens before they hatch. We are building a business and I think we are doing all the right things to get better stability, better average gross margins, less dependency on the optical cycles, and very good breadth. See our less than 10% - we don’t have a customer that we have to name as a 10% customer. So I think all the pieces are being put together for really good stability and then there are a bunch of break-out scenarios that we could go through at some point, including one of them is the ICP break-out based on TeraFlex, but there are a number of other stories that we have that we are pursuing that are pretty hot right now.
