Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Mr. Greg Mesniaeff with Needham & Co. Please proceed, sir.
Greg Mesniaeff – Needham & Co.
Yes, thank you. And congratulations on a nice job on the quarter. I have a question on the pilot activity that you referenced in your remarks. Clearly, there is an uptick taking place here. But I was wondering if you can give us some color or indication as to what percentage of these pilots either translate or have translated recently into ongoing order commitments? And typically a little more color on the number of participants in these pilots, is it just you guys or is it you plus some of your competitors; kind of give us some background on that as well? Thank you.
Nick Keating
Okay. Thank you, Greg. No, certainly there are many companies that are participating in the pilots. And in fact early on, we achieved certification status, most of the pilots were done by AudioCodes or Dialogic or Quintum which was one of the early adopters also.
Greg Mesniaeff – Needham & Co.
Right.
Nick Keating
We think that we are gaining significant traction and market share over the last couple of quarters in these pilots and the fact that we went from over a 100 to 300 is a good indication of the traction that we are getting and we are also getting that traction the all over the world. That was part of the point I was trying to highlight. This is not just North America. It’s Europe, it’s Middle East, it’s Asia PAC, Latin America. These pilots are both wins for the Quintum Tenor product and for the VX. And so for instance, Latin America, we see the more of the pilots for cost reasons are on the Tenor than on the VX. And then the larger enterprise customers, they tend to be almost exclusively VX customers.
What is happening, the pilot is typically two to three months pilot, could be anywhere from 25 users to a few hundred users. That’s kind of the typical profile. At the end of the pilot, then the customer has to make a decision whether they want to terminate the pilot and not do anything or if they want to continue with the product. At that point, they have to make a decision to either return the consignment back to us, order purchase the equipment. We are seeing the overwhelming number of those pilots purchasing the equipment, which I think is positive both for the UC adoption as well as for the success that we’ve had.
- To read the full transcript on Seeking Alpha, click here »
