Network Equipment Technologies F3Q08 (Qtr End 12/31/07) Earnings Call Transcript

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2008-02-12 15:20:07.0

Tags: Network Equipment Technologies Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Eric Buck - Brean Murray, Carret & Co.

Eric Buck - Brean Murray, Carret & Co.

First of all on the Microsoft Certification congratulations on that. I was just curious as exactly what products are covered by that certification, is that across the board or is it on specific gateways?

C. Nicholas Keating

It relates to the operating software, and a particular software release was approved and it’s approved with the use of our Sticks card so it would apply to the VX1200 and VX1800. And as long as other members of the VX Series are on the same release then it could be extended to those also.

Some of our products in the VX Series are really focused on the federal government. The VX900 and the 900T and the 400 are really government products but to the extent that they would use the Sticks card and have the same operating system, and then they would qualify under the certification.

The other thing I want to point out is that the Quintum product line is also Microsoft certified. It has been in the past. The Gold Partner status that we achieved also was a result of bundling the core competencies of both Quintum and NET and it’s a certain point scale you have and the combination of that point scale enabled us to achieve the Gold Certification status.

Eric Buck - Brean Murray, Carret & Co.

Can you remind us the difference of the 1800 versus the 1200?

John F. McGrath, Jr.

It’s really a matter of size. The 1200 has two of our telephony cards, which we call the Sticks card and supports about 1500 to 2000 users. The 1800, which we said in the script supports at least 5000 and in certain circumstances could support up to 10,000 users. VoIP companies use different standards. In some cases they assume 10% utilization; by the employee base others assume 20% utilization. We factored in 20%, which set 5000 users. If you had 10% utilization, we would actually be supporting 10,000 users.

Eric Buck - Brean Murray, Carret & Co.

And on the migrating into Plexus, given the strength in the Promina line, this quarter I assumed there wasn’t any revenue impact from the migration?

C. Nicholas Keating

Well this quarter like other quarters, a number of our orders are FOB destination and this was also the case in Q2. In some cases the products that we build arrived at destination later. I, quite frankly think that that’s going to be an ongoing; some of our destination locations are around the world.

 

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