I think this is a very aggressive schedule.
Q4 results were Feb 28, which were obviously delayed for bad news which was baked in.
The Q1 date is May2. Which means within just 60 days of earlier quarterly results. So for Hopefuls, there is some takeaway.
Procera normally announces some wins going into the results. Should we expect 1 per week starting this week? Five T1 and other large orders for Q1 and Q2 were already announced going into Feb 28th Earnings call. So we should have really good feeling about the Q1.
(A) Initial order of a multi-year contract with Orange Switzerland replacing competitor product. (This is a good size customer) - Q1 and Q2 revenue
(B) Multi-mil $ T1 initial order from Middle Eastern converged Fixed line and Mobile NW operator. PL10000 platform for Network wide deployment throughout its footprint. Revenue 1H 2013
(C) T1 Middle Eastern multi-mil dollar initial order. Part of Q4'12 & Q1'13 order
(D) Multi-million$ contract to provide IPE, West EU T1 incumbent service provider after Extensive evaluation.
Revenue to start 1H 2013. PL20000 IPE system 320 Gbps throughput.
(E) West EU T1 MSO follow on order 1.3 Mil (serves BB triple play customers in one country. Purchased PL10000 in 2008 upgrade now to PL 20000. Rev in Q4 and 2013 Q1)
This is Georgios Kyriakopoulos on behalf of Simon Leopold. Can you discuss productivity you are seeing so far in 2013? And your confidence to grow business by 25% to 30% in 2013? And overall, has anything changed on your view of the DPI market, perhaps more competition from integrated vendors or new entrants? And also, you mentioned that you increased your exposure to Tier 1 customers, which also comes with lumpiness but overall, you would expect there to have accelerated growth in 2013 but it seems like your 2013 number for growth is slower than 2012. Can you expand on this?
James F. Brear - Chief Executive Officer, President and Director
Sure. So I would say, again, as I stated, the market conditions, from our perspective, are very good. Our funnel is the strongest it's ever been. Visibility is good. From a competitive standpoint, I'd say, not much has changed. In fact, I feel, based on our record of 13 wins in the year, I feel pretty good about our ability to execute and beat the competition. We had no material losses in Q4. I don't see any real impact of what you call the integrated competitors, I don't see them at all. That hasn't changed a bit. And my direct competitors, we continue to win all the major wins. So market's good, we feel good about the competition. And from a growth standpoint, what you're hearing is, we plan to grow faster than the market and take share. What we're signaling is revenue recognition, when you close a very large Tier 1, the supply agreements that we contract with are more stringent and it's a little more -- it's a little more difficult to time when we get recognition.
The reason I have no hope for 1st qtr is their guidance on Feb. 28th. They basically told us the first two quarters this year will be bad, and they said this on Feb. 28th, 2/3 of the way through 1st qtr. If 1st qtr was good they wouldn't tell us to expect losses in the first half of the year and wouldn't have released such awful 2013 guidance (10%-15% organic growth). It's great to be hopeful, but not in this case. PKT does not have hope at the moment. Maybe in a year from now hope can come back. But not now.