Very interesting informaton from Sean of Sophic Capital!
I wrote to Seanwith a couple of questions. Here are his responses..
1. The average cost of fiber cables is around $150
2. The number of cabels in a mid-sized data center is 50,000 to 100,000 units.
3. There is no limit to the number of chips and cables S7's supplire could produce if required.
The following are my views/conclusions
In 2018 $3 billion's worth or 20 milion fiber cables are expected to ship. In 2018, $4.2 billion's worth, or 28 million cables are expectred to ship. Both dollar amounts come from S7's latest presentatioh.
Once testing is compleded this year and data center providers are satisfied with S7's active copper cables, S7 will be in a position in 2018 and 2019 to deliver the cables to whatever contracts they manage to secure. So revenues and earnings could increase significantly in just over a year.
2. At 20 million cables to be provided in 2018 at an average of 75,000 per data center, there might be some 250 data centers built in 2018 and some 370 in 2019. Big numbers and very promising for S7.