Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the MetaSwitch opportunity and its potential impact? A: Bruce McClelland, CEO, explained that the MetaSwitch opportunity is substantial, with a significant installed base. The ongoing maintenance revenue stream is around $75 million, indicating a large footprint. While some systems will continue as is, others will be upgraded or replaced, presenting a rare opportunity to capture market share.
Q: What are your expectations for the BEAD program's impact on revenue? A: Bruce McClelland, CEO, noted that while the BEAD program is progressing, with nine states opening grant applications, the impact will be gradual. The first half of 2025 will see modest activity, with acceleration expected in the second half as construction begins, particularly in the middle mile portion of networks.
Q: Were there any areas in the quarter that did not meet expectations? A: Bruce McClelland, CEO, mentioned that while profitability and margins were strong, revenue was slightly below guidance by $1.5 to $2 million. This shortfall was attributed to a few deals in Europe that did not close as expected, but the pipeline for Q4 remains strong.
Q: How should we view the growth prospects for the Cloud and Edge business? A: Bruce McClelland, CEO, highlighted that this is the best period for the Cloud and Edge business, driven by network modernization and unified communications. The focus on cost reduction and the aging workforce in network operations are key motivators for upgrades, alongside strong demand for session border controllers and policy management solutions.
Q: Can you elaborate on the mid-single-digit growth guidance for 2025? A: Bruce McClelland, CEO, explained that the growth guidance accounts for the need to offset the suspension of Eastern European business. The Cloud and Edge business will need to grow faster than the mid-single-digit rate on the product side to achieve overall corporate growth, with IP Optical expected to recover and contribute positively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.