Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And our first question comes from the line of Paul Silverstein from Credit Suisse. Please proceed with the question.
Paul Silverstein – Credit Suisse
Thank you, first off, what were the three customers in the aggregate? What did they constitute as a percentage of revenue or in dollar amount?
Paul Brauneis
Again, I don’t think we usually express it in that fashion, Paul.
Paul Silverstein – Credit Suisse
Actually can I interrupt for one second, because you gave me that same response last quarter? With all due respect, it’s fine if you want to change the policy, but I went back and checked your transcripts, and up until last quarter, you’ve given it to us every quarter, so that’s actually not an accurate statement, but if you want to change the policy, I don’t have a problem with that, but it’s not that you haven’t given it to us in the past – you have. You gave it to us every quarter except the quarter, and you gave me the same response last quarter when I asked the question.
Paul Brauneis
Well, hand on one second then. Three customers over 10%, this quarter, probably around 45% of total revenue.
Paul Silverstein – Credit Suisse
And if I may, your 10% customers last quarter in the aggregate were what percentage?
Paul Brauneis
I candidly don’t have that information in front of me right now. I can get that for you and get back to you.
Paul Silverstein – Credit Suisse
Alright, I appreciate that. Dan, for you, I recognize that you’ve been very candid with us upfront in terms of trying to change the business model. This quarter is another demonstration, as you pointed out, of the risk of customer concentration, but I guess the question is going forward, what’s going to change and what’s the timeframe? You’ve got a good product in your optical switch. It seems like between ethernet, driving architectural shift, as well as this cutover from the old [inaudible] optimal mesh which finally seems to be happening, from a market standpoint, there’s an opportunity here, but what will it take to change this operating model, or is this just simply a matter of waiting for the next acquisition or two to significantly transform the profile of the company?
Dan Smith
I think there are probably three things that would change the operating model, in terms of winning new significant customers, secondly expanding the served available market of the company into other market segments that are complementary to the things that we’re working on at this point in time, and then the last part would be acquiring new significant customers. When we talk about entering additional marketplaces, that would come from potentially two areas—one, organic development, and two, potentially acquisitions.
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