Conference callExcellent session. Long (my phone died near the end), many analysts with lots of questions, but very informative & positive. Caputo was really on his game this time - confident, articulate & positive! Great Q&A - try to catch it - I think they post the replay later on their website.
So much info in the Q&A part:
Congratulations from several analysts. They seemed pleased with the answers from Caputo.
Caputo was able to mention some big customer names: Alcatel-Lucent, Motorola, Nokia-Siemens; NTT & Mitsubishi as major Asia customers.
Containing expenses very well even with increase R&D during the quarter and much less gov contribution.
He strongly believes SVC is leader in the space ("as do many industry analysts") with best of breed solutions. Their aim is to be #1 across all geographies & platforms.
He said the "Long Term" business model has progressed to "Mid Term".
F5 Networks(?) & Cisco are there major competition but they don't provide streamlined solutions whereas SVC provides the customer with one solution for most of there needs. Customers appreciate that. He mentioned that although Cisco is a major competitor, quite often they act as a partner when dealing with the same customers.
Growth continues in all geograhies & platforms.
Very happy with the net neutrality debate which has become more realistic and he feels that SVC has made a real contribution to the debate. He didn't seem to have any worries about how it will end.
Mentioned a growing concern that ISP's have with the increasing signal traffic interference that is taking up broadband width. It has opened up a new revenue stream & opportunities for SVC to provide ISP's with "ammo" on how to fight it & manage it that adds real $$$ to the bottom lines of the ISP's.
He felt that because BWC & SVC share very few customers, each company can help the other grow their customer base and increase opportunities for each other.
Service revenues were a record. He ''loves" their growing professional services group. It makes SVC more "sticky" with the customers providing them with more "hand-holding" support for their more complicated products. He says some ppl think it's a drag on revenues but he feels the opposite - it provides real $$$ to SVC, directly & indirectly.
Continued follow-on opportunities with existing customers - takes a while for customers to really learn how to use the solutions and often need additional products & services.
No projects have been cancelled, only added.
Caputo handled the book:revenue issue much more adeptly this time. He thinks in his business, it doesn't mean much, as witnessed by the record revenue, as they booked & billed in the same quarter. He only added the metric cuz analysts wanted him to mention it, as other companies do.
It was definitely a much better conference call than last time! Definitely painted a bright future picture.
Market sure likes the results. Too bad it's a down day on the markets overall. Maybe they'll turn around.
Hopefully Bladerunner is a thing of the past. In your face! I think now he's losing out on the way up too :-)
Will we see Caputo on BNN today???