& cplSiteName &
Comments
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
brooks7
brooks7
2/22/2018 | 2:27:45 PM
Any feedback from Calix?
 

I am actually more interested in the deal from a Calix standpoint.  They have been in the cabinet business since their founding (almost 20 years).  They have not yet become profitable and a rather yo-yo stock price after their recent earnings.

The interesting note out of the call was that the upside around the Verizon deal was really soft-peddled.  There was much more was made of ongoing OPEX reduction which this would be a part of.  The challenge will be whether this decrease in OPEX is offset by the decrease in Gross Margin.  

This will not impact the top-line revenue and it is interesting that Calix has NOT done a press release.  That means that they do not consider it material to their investors.  The revenue on this won't change, but it does represent a change in the business.

I also think about this in terms of the potential Verizon business.  The cabinet business is really low margin, and I am interested to see how a Verizon PON for them impacts margin.

seven

 


Featured Video
Upcoming Live Events
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events