ADC Telecommunications, Inc. F4Q08 (Qtr End 10/31/08) Earnings Call Transcript

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2008-12-09 18:55:34.0

Tags: Revenue, ADC Telecommunications Inc., Call Transcript, Earnings, Morgan Stanley, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Scott Coleman - Morgan Stanley.

Scott Coleman - Morgan Stanley

First, maybe a housekeeping question. I haven't been able to find the revenue breakdown by product category like you provided in the past. Are you stopping providing that or am I just not looking in the right place?

James G. Mathews

We are not providing that in the release.

Scott Coleman - Morgan Stanley

Will you provide it in your filings?

James G. Mathews

In our 10-K filing?

Scott Coleman - Morgan Stanley

Yes, or 10-Q?

James G. Mathews

Yes.

Scott Coleman - Morgan Stanley

Okay. That is, I think, an important element to understand what's going on in end demand. I know I speak for a lot of the folks on this call and your investors that I think it's valuable information to have at the time of the release.

James G. Mathews

Okay.

Scott Coleman - Morgan Stanley

Maybe moving on to my question, Bob, if I go back to 2005, you guys had a very challenging fiscal Q1, down 30% quarter-over-quarter. But also at that time was the very early stages of FTTX rollouts. I note that both in your press release and on the call you talked about a significant number of trials under way for FTTX, and I'm wondering - I think everybody gets that the macroeconomic is very different, but could you give us an idea of what you're seeing in the carrier landscape in terms of these FTTX trials? When do you think they might turn into revenue? Could they be the same kind of materiality that we've seen over the last three or four years from ADC?

Robert E. Switz

Yes. You know what? It's a great question, and there are many spread around different geographies in the world. They're all on different time tracks; they're all of different size and scope and scale. And I guess my view is consistent with what I said several years ago in that I believe the international marketplace would start to come on about the time that the U.S. market would peak, and I think that's in general playing out.

I would not anticipate in 2009 any meaningful revenue coming out of these trials. I would expect that we would start to see awards during 2009. I think some of these will go from trials to RFPs and awards, which should start the revenue streams in 2010.

 

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