Ixia, Q1 2009 Earnings Call Transcript

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2009-04-23 18:48:15.0

Tags: Call Transcript, Ixia, Earnings, Carrier, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. We will now begin the question and answer session. (Operator Instructions). And our first question comes from Ajit Pai. Please go ahead.

Ajit Pai - Thomas Weisel Partners

Yeah, good afternoon.

Tom Miller

Good afternoon.

Brent Novak

Hey, Ajit, how are you?

Ajit Pai - Thomas Weisel Partners

Couple of quick questions I think one on the carrier opportunity I think you’ve mentioned that year-over-year days was up, but on a sequential basis it was down. So, could you give us some color as to the kind of applications that carriers are looking at your product for? And why you haven’t, when you talk about it being lumpy why there hasn’t been further progress in penetrating that market?

Tom Miller

So, Ajit, overall I would say carriers in Q1 generally are softer and carrier sales in general has a longer gestation period. But I have to say that triple play services voice-over IP network in MSOs and a lot of interest in 40 and 100 gig are probably the key areas where we see definitely expanding interest. And also I think carriers are becoming lot more sensitive to the quality of experience of end users, all large carriers and this is a global phenomena. All large carriers are ensuring that as they bring IPTV services or video services or interactive services or gaming services, they absolutely simulate and test the realistic end user traffic and scaling before the private services. And that’s we have products IxLoad are really shining and doing very well.

Ajit Pai - Thomas Weisel Partners

Got it, but if you have a look at the number of carrier customers, not like necessarily just to revenue, has that count being going up and is it still, it is in single digits, it is in low double digits, how many carrier customers did you have in the quarter?

Tom Miller

I don’t have that number, we'll look at up right now and get it to you in minute here. But I think that, that is numbers not going up as much or as we would expect the volume per customer to go up. We think there is a lot of potential it, some of the major carriers to increase our share of the business and to sell more. Over the last several year we had great success with AT&T where we took it from a relatively small account to major account, and we think there is a opportunity at a lot of carriers both in North America, Europe and Asia. So, I think that were not look -- we are looking of course to grow the number of accounts but it's really the volume for account where there is a great opportunity.

 

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