Zhone Technologies Inc. Q1 2009 Earnings Call Transcript

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2009-04-23 18:33:17.0

Tags: Shareholder, Call Transcript, Earnings, Stimulus, Question, Financial Accounting, Finance, Seeking Alpha, Zhone Technologies

Question-and-Answer Session

(Operator Instructions) Your first question comes from the line of [Karl Laconte] - Private Investor.

Karl Laconte – Private Investor

Actually I have three questions, should I ask all three now or ask one and then wait?

Mory Ejabat

Ask all three questions now.

Karl Laconte – Private Investor

At your last quarterly teleconference, you mentioned you were expecting some new deals early in Q1 and then indeed there were some announcements, shortly thereafter but there haven’t been any announcements of new sales recently. Are there any deals you expect to close here in the near term and are they of substance?

Mory Ejabat

Yeah, we have also got several deals during Q1 and recently but as the customer would allow us to make the press releases or announcement, we do so. So, so far we are working on several press releases that’s going to hit in the next few weeks.

Karl Laconte – Private Investor

Question two is, on the 16th and 17th of this month, there was about a 50% run up in your price of the stock. Can you comment on what you might attribute that to?

Mory Ejabat

I would not have any idea. I cannot comment on that.

Karl Laconte – Private Investor

And then third question is, could you comment or maybe Kirk could comment, there’s a recent rating from audit integrity that says that your accounting and governance risk was higher than most of the other companies they had audited. Can you comment on that?

Kirk Misaka

I’m sure that that was prepared in preparation for our annual shareholders meeting in May. I’m not aware of the reasons for an increased risk rate.

Karl Laconte – Private Investor

But you expect then that would be discussed in May?

Kirk Misaka

It won’t be discussed in our May meeting but normally the governance ratings come out prior to the shareholder meetings, that’s all I was saying.

Operator

(Operator Instructions) Your next question comes from Karl Laconte – Private Investor.

Karl Laconte – Private Investor

Actually you triggered this thought in your discussions. Do you see any specific value or progress that may occur due to the Federal Government stimulus package in terms of your business in both the near term and maybe over the next few years?

Mory Ejabat

As we said in this meeting, we are hopeful that the stimulus package will be a positive initiative for us and for the broadband initiatives. So, we are hopeful that will increase our revenue in the next few quarters.

 

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