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AXIA NETMEDIA J T.AXX

"Axia Netmedia Corp owns, operates and sells services over fibre optic communications networks. Its reportable segments are The Covage segment and The North American segment."


TSX:AXX - Post by User

Bullboard Posts
Comment by 499ccson Sep 21, 2007 12:32am
651 Views
Post# 13440274

RE: Conference Call

RE: Conference CallI view the conference call an the Q4 results a bit more positively. I France, AXX is being a bit more cautious about bidding on concessions, which bodes well for future margins. The fact that the builds on the concessions that have already been won are still in the early stages means that revenue is yet to come...starting a couple of quarters out, then building in the same way as the SuperNet. And moving to a hybrid DSP/PP model in France means that capital costs will be reduced, which is also good news, even if it will slow the overall process down a bit. What's not apparent to most is that in Alberta, based on the contract once Supernet traffic reaches a specific rate (something in exces of the current 50gbits), AXX's contract with the provincial government sees them clawing back a share of the money the government is saving. It's a bit of a convoluted formula as I recall, and something the analyst community hasn't tweaked to, but over the course of the existing contract the additional "earnings" could prove to be substantial. Based on a comment by Jeff, that contractual traffic threshold is in sight. The politics in Australia that have slowed down the process also might work in AXX's favor if the incumbent government is turfed, which apparently the polls show is possible. All in all, things are progressing well IMO, if not as quickly and predictably as the market may have been expecting. I lightened up a bit at $6.80 back in July, but I'm still holding a substantial block in anticipation of revenue showing a steady upward climb by mid-F08. The timing of another win in either Australia, Singapore, the Midddle East or elsewhere is anyone's guess, but I believe it will happen eventually and the longs will be happy they're still here.
Bullboard Posts