Question-and-Answer Session
Operator
Thank you. (Operator Instructions) We’ll go firs to Tom Roderick.
Tom Roderick - Thomas Weisel Partners
Hi. Thanks and good afternoon. So first off, congratulations on achieving non-GAAP profitability again. Nice job getting the expenses down. I guess as we look at the longer term future of the company, a lot sort of rests upon the adoption of new products by your customers and it sounds like you had a couple of nice wins there.
Can you go into a little bit more detail in terms of what you’re doing to get carriers to adopt and use some of these newer products, the next-gen products? How you’re incentivizing your sales force to focus on selling those new products and then perhaps the bigger challenge right now is carriers tightening up on their wallets? How do you cite the environment that we’re in to get them to adopt new services and focus on your next generation of products rather than maintenance and upgrades to existing capacity? Thanks.
Ken Denman
Tom thanks a lot for your question and your comments on the front end of that. Fundamentally, we are fortunate and that there are some dynamics that are going on in the marketplace that are going to really force our customers, operators to continue to look at new and interesting ways to solve the problems that they are facing.
Capacity constrains are significant driven by increases in mobile data, which are in turn driven by video, video as kind of a symptom of things that we’re going to continue to see hitting the marketplace in the near term. So, there’s a real capacity there, an issues that’s driving a need for better visibility by our customers in terms of what’s happening to them.
So, from an analytic standpoint, from an optimization standpoint and then a lot of interesting sort of service enablers that are natural outgrows to those things are all the kinds of things that we’re finding operators are very interested in talking about. Not only because it helps them address from a network operation standpoint, how do they manage a smart, intelligent network, but also from a sales and marketing standpoint, if they don’t have the access to the data and information about what’s happening to end users, they really cannot market to their customers in the way that they need to.
So, we are spending a lot of time, talking about the drivers of the -- problems is probably not the right word; the drivers of the issues that are causing them grief and the things that they have to solve for in order to maintain market share.
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