Avanex Corp. F2Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-02-05 20:13:11.0

Tags: Revenue, Nortel Networks Corp., Avanex Corp., Call Transcript, Morgan Keegan Co., Earnings, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) And we will go first to Paul Bonenfant with Morgan Keegan.

Mark Harrell - Morgan Keegan

Hi this is [Mark Carrol] calling for Paul Bonenfant. First question is just on housekeeping, would you guys mind repeating the percent for each segment. My numbers weren't adding when I heard software transmission, regeneration wavelength?

Mark Weinswig

Yeah we can kind of give only basic figure. So basically, our transmission products were about 31% of revenues in the quarter.

Mark Harrell - Morgan Keegan

Okay

Mark Weinswig

Our wavelength management was 14% and then remaining 55% was for our generation products.

Mark Harrell - Morgan Keegan

Okay thanks. Next thing top customers sold knows that Infinera had joined list along Alcatel Lucent, are you willing to give us specific percentages on that move?

Mark Weinswig

We will be disclosing all those things in our upcoming 10-Q, but just so, we do which is pretty typical for us. But we are very happy about the fact that Infinera did join the greater than 10% customer list for us and as Giovanni mentioned on the call it was due to a couple of design wins.

Mark Harrell - Morgan Keegan

Okay and as well as last quarter Nortel came in around 15% of sales noticed that they were absent, this quarter can you talk about the reproductions and their bankruptcy and how that business looks going forward?

Giovanni Barbarossa

Yeah hi thank you this is Giovanni. So I think it’s very difficult to distinguish between impact on revenue from Nortel because of the macro economical environment which we are facing verge of the bankruptcy, but from a daily kind of interaction standpoint with Nortel there is really no change from our standpoint. There was a decline in revenue and the fall at the top from the 10% customer list that there is still a load of activity for new amplifier designs with Nortel. So we are counting on them to be again the 10% customers sometime in the future.

Mark Harrell - Morgan Keegan

Okay and did you differ any revenue from Nortel in the quarter?

Mark Weinswig

In the quarter we had about $600,000 that was in our accounts receivable balance as at the end of quarter. As a result of that what we wrote off $200,000 to bad debt. And then we reversed the revenue for $400,000. So it was a rather minimal impact for us in the quarter. And just as we stated on the last quarters conference call Nortel’s revenue did significantly increase last quarter which was a little bit surprising for us. So we were obviously we are happy about that last quarter. And they’ve gone back down to more normal levels for us.

 

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