Sandvine Corporation F3Q08 (Qtr End 08/31/08) Earnings Call Transcript

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2008-10-08 10:32:11.0

Tags: Revenue, Comcast Corp., Call Transcript, Earnings, Sandvine, FairShare, Revenue Recognition, Operational Accounting, Financial Services, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Dushan Batrovic - Canaccord Adams.

Dushan Batrovic - Canaccord Adams

A question around Comcast. I'm wondering if you could go into a little more detail on the deployment itself. I know that there were pieces of that contract that have not yet been awarded. Are you bidding for those pieces? Have those decisions been made? And is it reasonable to assume that the deployment will finish in your fiscal Q4?

Dave Caputo

Well, we're obviously ecstatic to be selected by Comcast again in the strategies to deliver an excellent Internet experience to their subscribers. There are a number of different components to that solution, and our Congestion Management for FairShare is what we believe is the heart of that solution.

The PTS which we also got deployed widely at Comcast plays a key role as well as it measures the effectiveness of any policy deployed in the network, including FairShare, and it of course runs other applications. With respect to FairShare, the PTS can be used to gather the subscriber usage data and is required if any aspect of the FairShare policy needs any application awareness.

There are some other components of it, including the IPDR data collection and the policy server in that solution. Sandvine is in a position to deliver all those components to any service provider that's looking to roll out FairShare. In the Comcast case, they've had some existing relationships with other vendors in those areas and the complete deployment picture isn't firmly established yet, but we like our position in rolling out FairShare at Comcast.

Dushan Batrovic - Canaccord Adams

And as far as timing, do you expect the majority of the deployment to be finished in your fiscal Q4?

Dave Caputo

Yes. In terms of deployment, Comcast has said they will do it by the end of the year, I believe. Our fiscal year ends at the end of November so there might be a bit of timing there. And then I think Scott will maybe speak to the revenue recognition aspects of that.

Scott Hamilton

I'm guessing your question's probably more of when will we recognize the revenue. We've just completed the contract and are analyzing that. With it being a new revenue stream for us, we haven't quite concluded the timing of recognition, as the deployment itself is just starting to get under way. So we don't have any certainty as to the date that it will be finalized by.

 

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