Veraz Networks, Inc. Q3 2008 Earnings Call Transcript

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2008-11-27 21:12:10.0

Tags: Opportunity, Call Transcript, Earnings, Wi-Fi, Wireless, Seeking Alpha, Veraz Networks

Question-and-Answer Session

Operator

(Operator Instructions). The first question comes from Eric Kainer of ThinkEquity. Mr. Kainer please go ahead sir.

Eric Kainer - ThinkEquity

Thank you very much and congratulations on a successful rebuilding quarter here. First question is really about IPX which seems like potentially an area of very strong growth for you. I wonder if you can tell us -- okay you've had a couple of successful trials here with major operators. What should we expect here as we move forward and how quickly do trials in this area turn into substantial revenues?

Douglas Sabella

Okay. Eric, let me take a stab at that because it's always difficult to make a prediction on that but let me kind of parse it into two categories. First of all on the wholesaler's side, which would be folks like the Belgacoms et cetera the TNZIs. We think that's going to move fairly quickly and we're expecting our first orders this quarter and we'll see more we think over the coming three six months out.

But, beyond that we think we're now starting to see interesting opportunities from other Tier 1 carriers that actually also have wireless properties. So if you parse the market between what I'll call the traditional international and LD folks and then folks that have properties that are don't touch each other and need to actually move communications across discarded properties, we see it as a very big opportunity but it's also a longer cycle opportunity. So this intra-carrier opportunity is going to play out over the next year, year-and-a-half, two years and as I said we're actually actively engaged with several very large Tier 1 carriers in that respect.

Eric Kainer - ThinkEquity

Okay. And I'm sure larger opportunities specially take longer--?

Douglas Sabella

Yes.

Eric Kainer - ThinkEquity

To develop and that's just the nature of the beast. Second question is, I didn't hear a new customer count, maybe I just missed it on the call but could you tell us about new customers in the quarter?

Douglas Sabella

We had six new customers and we're now slightly above 110.

Eric Kainer - ThinkEquity

Okay great. Next question is about DoD. I think you mentioned that you had a couple of different deployments there. Obviously you came up with the JITC certification last quarter. I wonder if you could tell us how big the opportunity is within DoD.

 

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