RE:I'll give you guys a hintThe hint, “Digital Realty” company has 205 data centers spread out across the US and other parts of the Globe...
They claim to be the largest in the world!
Obviously a Supply relationship with a company this size could lead to some potentially significant orders.
I guess I have 2 questions :
1. Will existing data centers be able to retrofit their equipment with Spectra’s new cables or is Spectra’s play simply to provide their cables and chips to newly constructed units?
2. I am sure there is information available quantifying the number of existing data centers and size as well as new centers being planned. Anyone in the industry on this board that has these numbers?
What I like most about this segment of their offering is that it is a commercial application and not reliant on retail purchases as the case with most of their VR sales today.
Not sure what their gross profit is on the cables with the chips, hoping they can maintain close to their 60% number they have on their VR products. Most of these fabless chip designer seem to have margin compression once the product starts moving in serious volumes.
There is a similar company, Invense (Invn) that was bought out some months back that endured some very rocky times along the way. With these major partners such as Foxconn in place now it should remove any supply issues previously experienced and open the gates for the data center companies to make purchases without worrying about Spectra’s management being involved in the fulfillment process!
GLTA