Zhone is sharply focused on primarily growing profitability and profitable revenue. This is not jus a promise, they have already delivered six consecutive quarters of predictable results.
They are getting better - slightly conservative - in their guidance.
If they did $10M is FiberLAN, and lets assume their revenue for the core business did not grow at all, they will be able to generate an additional about $4M of profits in comparison to their profits in 2013.
The speed up of the counter in the last few weeks of the quarter, as I had expected, is related to the improved backlog and will generate revenue in the next and the coming quarters.
The turn around is complete. The exciting story is intact. And, $8 (or may be even $10) later this year is very doable.
At least for me this is what is important; the rest is noise.
the company continues to disappoint. Remember the giant move in the stock price was solely a function of management's flamboyant Fiberlan promises but actually they are totally failing with regards to this product line. With results and guidance once again below very modest expectations, Fiberlan revenues down from Q4 and absolutely no growth in the business I don't see any reason to own the shares. Management's projections shouldn't be trusted as the company has been a steady underperformer.
i see you as an educated and intelligent poster, however I am very cautious on ZHNE's near term outlook based on the past qtr results. granted i have not had a chance to listen to the CC, but Mory preaching 2014 goal of profit growth (not revenue growth) is very concerning and against the thought of fiberlan traction this year.
I hope you are right and that there was mention of significant growth in backlog and hint for a solid QOQ growth and profits but statements I have seen have been measured and will take this stock a few steps backwards
you should listen to call before posting. Because zhones fixed costs are fairly constant and fixed, and they have extra capacity,the earnings track the revenue to a high degree. As I recall Mory did mention that next quarter costs would go up on account of more commissions.