Sandvine Corporation F2Q08 (Qtr End 5/31/08) Earnings Call Transcript

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2008-07-08 11:33:13.0

Tags: Call Transcript, Customer, Earnings, EMEA, Sandvine, Sales Strategy, Sales Force Management, Wi-Fi, Wireless, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from Gus Papageorgiou - Scotia Capital.

Gus Papageorgiou - Scotia Capital

I'm just trying to understand. I mean, you're saying that you matched your record quarter for 12 customer wins in the quarter, so you're clearly gaining some traction here but, you know, visibility is clearly deteriorating. So I'm just wondering, is it that, the larger customers that you're waiting on, is it that they're not - are they the ones that are deferring orders, or what am I missing here? I mean, I'm trying to reconcile these two influences.

Dave Caputo

I guess there's two things here. There's clearly our largest customer not doing follow-on orders of any significant form, so that's a big part. And then, for the new customers, you know, we continue to gain traction, and with some of the larger customers we've won, they've been modest initial orders. But in every one of those cases we expect to do followon sales to those guys.

And then I guess if we reflect back at the beginning of the year, we thought we would be much further along with some larger opportunities at this point in the year. And we're just seeing those big customers take longer to get through their very specific purchasing cycle and how quickly they get to a deployment phase.

But we really like our competitive positioning by winning more deals. We don't believe we're losing any deals of any significance.

Gus Papageorgiou - Scotia Capital

I'm just wondering, Dave, can you, when you talk about the bigger customers, can you kind of give us a little more color, both geographically and by access point? So do you find is it the wireless guys that are taking longer or are the wireless guys kind of accelerating versus DSL? And kind of between, say, North America and Europe, are you seeing both geographies deferring or is kind of one moving faster than the other?

Dave Caputo

Well, we're really just seeing EMEA turn on here. You know, it's the first time we've had 25% of our sales from EMEA and it was, you know, almost $3 million in sales. That was the largest sales we've ever received from those guys. The two large deals that we won this quarter from a service provider size perspective, they were both EMEA carriers. And, again, modest initial orders but we fully expect that we'll see follow-on orders in both those cases.

 

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