Digi International, Inc., F1Q09 (Qtr End 12/31/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-01-22 15:36:11.0

Tags: Environment, Call Transcript, Visibility, Earnings, Sales Strategy, Sales, Seeking Alpha, Digi International

Question-and-Answer Session

Operator

(Operator Instructions). And our first question comes from the line of John Vinh from Collins Stewart. You may proceed sir.

Ragu Madabushi - Collins Stewart

Thank you this is Ragu Madabushi for John Vinh.

Subramanian Krishnan

Hi, Ragu.

Ragu Madabushi - Collins Stewart

Hi, Kris. Just a housekeeping question first. MaxStream can you tell us what the year-over-year growth was?

Subramanian Krishnan

Yeah it was I mentioned earlier that it was slight growth. This was in the neighborhood of about 4% to 5%.

Ragu Madabushi - Collins Stewart

Okay. And Sarian, what kind of visibility are you having. Last call I think you had talked about wireless starter kit sales still keeping up. Is that still through now this quarter?

Joe Dunsmore

Yeah, we continue to see real strong demand. I'd say we had a peak in demand for kits last quarter for our wireless drop-in networking kits. And then if you look at year-over-year performance this last quarter versus the prior year certainly the kit sales are up significantly. So we continue to see strong demand for those kits.

Ragu Madabushi - Collins Stewart

But you're not really getting any push back from Fujitsu or anything about their deployment in UK.

Joe Dunsmore

Well, as I mentioned before, I think I just mentioned in the call that we still plan to shift entire Fujitsu order in fiscal 2009.

Ragu Madabushi - Collins Stewart

Okay, and if the general environment is more challenging in coming up with the forecast, what are you doing differently from prior quarters to I guess adding with the forecast?

Joe Dunsmore

The answer to that question is, yes. It is definitely a more challenging environment out there, and we continue to try to refine our process and continue to really drive to get more visibility, better visibility to all of our end customers and all of our opportunities and we'll review this on a weekly basis.

So, the process continues to be refined and we have a pretty well structured internal process for getting visibility. The reality is, in this environment regardless of the visibility and the touch you have with customers. Sometimes the customer themselves don’t know what they are going to do from week-to-week. So, it's definitely a more reactive environment out there than we've ever seen, where you'll have customers pulling in one week and than canceling the next week, more so I think we've seen or probably anybody out there has seen in a very long time.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
Click Here
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here