Sales were $12 million this Q, expected to grow to $40 million per Q by mid 07':
On today's conference call, Ciena management said Ericsson is selling almost a full range of Ciena equipment, but sales of the multiservice CN 4200 FlexSelect platform account for the majority. Ericsson is the sales channel partner for the 4200's deployment at Swisscom AG (NYSE: SCM - message board). (See Ciena Claims DWDM Coup.)
The 4200 has been particularly popular in Europe, where BT Group plc (NYSE: BT - message board; London: BTA) is another customer. (See Ciena Launches Mini CN 4200, Ciena Wins in Slovenia, Ciena Wins in Denmark, and Ciena Finalizes BT Agreement.)
Those wins helped push revenues from the 4200 to $12 million in the second quarter, up from $2 million in the previous three months. And CEO Gary Smith says Ciena's gearing up its supply chain for quarterly sales of $40 million for the 4200 product. He says the technology is being used by a broad range of customers, including cable operators, government institutions and enterprises, as well as traditional telecom operators.
According to Smith, 4200 revenues are expected to grow sequentially and hit the $40 million mark in early to mid 2007.