Hello Saul and Friends invested and smitten by both SWKS and INFN,
I did not, for instance, get the same assurance from the INFN conference call ~ Saul
Monkey wonders which parts from the INFN call gave you pause, confidence-wise, Saul? Because both the Skyworks and Infinera suits sounded like they were saying “nothing to see here, folks, we’re doing great!”
For example, here’s a few snippet’s from Infinera:
We are seeing most customers continuing to build footprint and add capacity, although some are exhibiting more choppiness in their spending than we had anticipated. We view this as a near-term dynamic and are not concerned about the medium- to long-term opportunity these customers represent or the opportunity of the overall market.
In closing, I remain very optimistic about the state of our business. Our customer base is healthy and broadening. Success in the short term will largely be dependent on the timing of our customers making investments in network upgrades particularly in metro and data center. While there is some uncertainty on this timing, we consider our customers making these investments a when rather than an if decision.
In the medium and longer terms, the trends are undeniably favorable. As a frame of reference, our introduction of Gen-3 PIC technology in the early part of the decade propelled us to a long-haul market leadership and was instrumental in building a large percentage of our current installed base. We consider the new Infinite Capacity Engine based on Gen 4 PIC technology to be an even more significant technology leap and this time we have a strong installed base already in place that is hungry to leverage our technology advancements in their network with straightforward line card installations. By continuing our commitment to innovation leadership and delivering the Infinera experience with each and every transaction, I am confident we will execute on the significant opportunities we have ahead of us.
Coming off many great consecutive quarters. Disappointed in Q2 outlook, but our industry can be lumpy. Don’t let short term fluctuations blur your perspective of our long term opportunity. Bandwidth demand will be strong. Video is a strong driver. Twitter will stream NFL games. ICPs are seeing a bandwidth multiplication effect. Server to server traffic is growing. Rise of GB cities, 5G mobile, and more increase demand. Customers value intelligent networks more and more with time. Our tech can meet these requirements. We can continue to deliver highly scalable, cost efficient networks. Our opportunity is good. Should gain market share end to end in optical transport market with great bottom line results.
So is the lack of confidence in the numbers themselves and the presence of this short term choppiness, or in something the suits said that rubbed you the wrong way that Monkey didn’t catch?
Long SWKS and INFN