Turin Turns Up the Volume
That's 120 percent compound annual growth in revenues during the next couple of years, 2009 in particular.
"There are contracts we expect to be able to announce in the next 30 to 45 days that will secure '09," said CEO Henry Wasik, speaking at the Needham & Co. Broadband Technology Day on Friday.
And it's not just the recent Carrier Access acquisition that's driving bigger numbers. (See Turin to Buy Carrier Access and Turin Bulks Up With Backhaul Buy.) Turin had expected revenue growth of around 80 percent even without that.
Privately held Turin doesn't disclose revenues.
The growth spurt would seem to indicate Turin's turnaround is complete. Wasik came on board in 2004 with aims to cut costs and expand the company's business. (See Wasik Plugs In at Turin.)
Today, he said the vendor of multiservice access gear sells into three main markets: carrier Ethernet, converged access networks, and wireless backhaul. The latter includes work with AT&T, and it's increasingly overlapping with Ethernet as wireless operators start adopting the technology. (See Turin Does Ethernet Over Copper.)
Most of Turin's customers in 2004 were independent operating companies (IOCs), he told Light Reading. Turin now has its sights on Tier 1 carriers, believing their support is key to any equipment vendor's survival. Along those lines, the Carrier Access deal helps bring the kind of breadth that bigger carriers like their suppliers to have.
Wasik didn't explicitly say the upcoming big contracts involved Tier 1 carriers, but it sure sounds like it. No customer represents 10 percent or more of Turin's revenues in any given quarter. That's going to change once those big contracts come around, Wasik said.
Like any CEO, Wasik is open to making more acquisitions, but he told Light Reading there's no major product void he'd aim to fill at Turin. Besides, the goals he has in mind for Turin won't be achieved just by adding more types of hardware; it's software development that will be the focus for the next few years.
"We don't want to be an Adtran Inc. (Nasdaq: ADTN). While they're a successful company, they're not exciting. There's not a lot of growth there," he said.
— Craig Matsumoto, West Coast Editor, Light Reading