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Executives

Mary McGowan – IR, Summit IR Group

Harald Braun – President and CEO

Tom Cronan – SVP and CFO

Analysts

Stephen Ferranti – Stephens Inc.

Rich Valera – Needham & Company

Blaine Carroll – FTN Midwest Securities

Ilya Grozovsky – Morgan Joseph

Larry Harris – CL King

Matt Martin [ph] – Alien Securities [ph]

Kevin Dede – Jesup & Lamont

James Faucette – Pacific Crest Securities

Harris Stratex Networks, Inc. (HSTX) F1Q10 (Qtr End 10/02/09) Earnings Call Transcript November 5, 2009 4:30 PM ET

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Harris Stratex Networks conference call. At this time, all participants are in a listen-only mode. Later we will open the call up for your questions. Instructions for Q&A will be provided at that time.

As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference call over to Mary McGowan of the Summit IR Group. Ms. McGowan, you may begin.

Mary McGowan

Thank you for joining us today to provide financial results for the first quarter fiscal 2010, which ended October 2. On today's call will be Harald Braun, President and Chief Executive Officer; and Tom Cronan, Chief Financial Officer.

During this conference call we may make forward-looking statements regarding our business including statements relating to projections of earnings and revenue, business drivers such as the transition to IP infrastructure, the timing and capabilities of new products and network expansion by mobile and private network operators.

These and other forward-looking statements involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements. For more information, please see the press release and filings made by the company with the SEC. These can be found on the Investor Relations section of our company Web site which is www.harrisstratex.com. Now I'd like to turn the call over to Harald Braun.

Harald Braun

Thank you, Mary, and good afternoon, everyone. For those who may not have had a chance to read our release, let me provide you with a recap of our financial results. Then I will turn the call over to Tom for details on the quarter.

In Q1, we achieved revenues of $120 million. On a non-GAAP basis, gross margins were 33%. Net loss was $800,000 with loss per share of $0.01. By segment, North American revenue was $48 million, international revenue was $72 million and we ended the quarter with a strong cash position of $133 million. We posted positive operating cash flow of $4.4 million and our book to bill ended the quarter at 1.

I would like also to mention a few highlights since our last conference call. We signed a development partnership with Juniper Networks. The first product from this affiliation is a wireless service gateway platform to support 4G and beyond. We captured new customer wins in Canada, Australia, Afghanistan, India, and West Africa to name a few.

They were also the recipient of several awards, including recognition as the top WiMAX provider in the Indian market with an estimated 70% market share. We also received an award for innovation that recognized our continued development of features for our Eclipse Packet Node IP backhaul platform.

I’ll provide more color on our strategy and our markets later in my remarks.

Now, let me turn the call over to Tom.

Tom Cronan

Thank you, Harald, and good afternoon, everyone. Let me start with a review of the GAAP financial performance of Harris Stratex Networks for the quarter ended October 2, 2009. First quarter revenue was $120 million and we reported a net loss of $7.8 million or minus $0.13 per share.

GAAP results included $6.1 million of pretax charges composed of the following – $3.8 million was for the amortization of purchased intangibles, $2.3 million was stock compensation, restructuring charges, and other.

Now I'd like to present the details of the quarter based on non-GAAP results. We believe the supplemental non-GAAP financial results reflect the basic operating results of the company and will facilitate comparisons of our results across reporting periods. Please refer to our Web site for a complete GAAP to non-GAAP reconciliation table.

By segment, North America contributed $48 million of revenue in the first quarter, down 24% from the year ago period. The slip between mobile and private orders for North America in the quarter was approximately 30% mobile and 70% private.

The international segment contributed $72 million, 46% lower than the year ago period. By geography, Africa contributed $29.9 million in revenue, 55% lower than in Q1 of fiscal year 2009. EMER, which comprises Europe, the Middle East and Russia, contributed $18.6 million in revenue, 51% less than the year ago period.

Revenue for the rest of the world was $23.5 million, 20% less than Q1 fiscal year 2009. In fiscal year 2009, the Network Operations segment was only 2% of annual revenue. Beginning with this first quarter of fiscal 2010, we've illuminated Network Operations segment as a separate reporting unit and consolidated this segment into our remaining two segments based on the location revenue is recognized.

In the quarter, two customers, MTN, located in Africa, and Middle East Telecommunications Company, each contributed more than 10% to our revenue.

Gross margin was 33.3% in the quarter versus 31.3% in the year-ago period. The higher gross margins resulted from cost savings in the operations function as well as lower logistics expense, and better supplier pricing on some projects. We believe that our margin is trending up but there will still be some variability on a quarterly basis depending on the structure of the transaction, product mix and the completion of projects.

Total operating expenses were $40.3 million or 33.6% of revenue. This amount compares to $44.2 million in the prior quarter and represents a reduction of $3.9 million. OpEx in Q1 2009 was $45.4 million. The prior year comparisons, we need to look at the annual expenses, with and without the OpEx associated with Telsima acquisition. When compared to the first quarter of fiscal year 2009, total operating expenses, including Telsima, were down 11% or $5.1 million. This decrease was driven primarily from our cost reduction programs as well as lower commissions and bonuses. Excluding the impact of Telsima, the operating expenses in this period were 21% or $9.4 million lower than the first quarter of fiscal year 2009. In Q2, depending on the mix of projects and transactions that recognizes revenue, there may be commission charges that are classified as OpEx. They will need to be recognized as expenses in the period.

Operating loss was $300,000 for the first quarter compared with operating income of $15.9 million in the year-ago period. Our pro forma tax rate was zero, because of the loss in the quarter. Last year's tax rate was 24%. Our cash tax rate is estimated to be about 2% for the full year 2010.

Employee head count was 1,531 compared with 1,521 employees in Q4.

Now we'll move on to the balance sheet. Operating cash flow for the quarter was a positive $4.4 million. Also during the quarter, we made a non-operating cash payment to the former Telsima investors of $4.2 million. Despite the payment, the cash balance as of October 2, 2009 was $133 million, a decline of $3.8 million from the Q4 ending balance of $136.8 million. Third party debt was unchanged at $10 million in the quarter.

The $133 million gross cash balance compressed and $96.9 million at the end of the first quarter of fiscal year 2009. This is the ninth consecutive quarter of positive operating cash flow. The 4.4 million operating cash flow as compared with $26 million in Q4 2009, and $3.9 million in Q1 2009.

The collection team continues to do a great job in this difficult economy. Accounts receivable decreased to $114.3 million in Q1 from $142.9 million in Q4 and DSO has changed from 76 days in Q4 2009 to 69 in Q1 2010. This represents the lowest DSO level in the history of Harris Stratex Networks. The company continues to focus on cash management across all areas, including accounts receivable and accounts payable.

Depreciation and amortization of property, plant and equipment and capitalized software was $6 million. CapEx for the quarter, including capitalized software, was $4.8 million. We continue our initiatives to decrease overall expenses, maintain our DSOs, and improve inventory turns. We are committed to continuing our focus on cash management in the coming quarters.

Now I'd like to turn the call back to Harald to provide you with a market and business update.

Harald Braun

Thank you, Tom. Overall, we are seeing similar business conditions as we saw for the last two quarters. The macroeconomic environment remains challenging and continues to constrain our full revenue growth potential. While there are some positive indications in various regions, the fact remains that we need broader global economic stabilization. We believe it is this economic unevenness worldwide that conceals the fundamental strength and demand for our microwave backhaul products and services. In turn, this latent demand is not yet reflected in our current results.

I would now like to provide a business review of the quarter, the specific color on the regions results. In North America, we continued to see signs of stabilization in the overall market. And note that it’s Q1 booking were up 28% from the year ago period. We have been awarded a contract by MTS Allstream, one of Canada's leading national communication solutions companies. MTS Allstream will be implementing in HSPA network in the province of Manitoba using our Eclipse Packet Node solution along with our full turnkey and support services. This win demonstrates our ability to be fully responsive to our customer needs, when being innovative and flexible as a solution provider.

We also captured a multimillion dollar expansion project in the San Francisco Bay area involving homeland security funding. This will deliver communications between law enforcement, fire protection, and emergency medical services. Our key differentiator in North America continues to be our ability to offer and deliver on end to end turnkey services.

A tier 1 US carrier has placed an initial order for the IIU 600. This is our all indoor radio units, specifically designed for North American customers to address network bottlenecks. We expect to see shipments in the March quarter.

Now let me provide a brief update on the American Recovery and Reinvestment Act, or the stimulus program as it is more commonly called. In August, the first application window for middle-mile project closed for the stimulus funding applications. We are now awaiting completion of the grants review process worth an estimated suite of $5 billion, and should note the winners by the end of this calendar year or early next year. In one instance, a particular state has applied for funding in a $100 million plus range and we expect to participate in that project. Another phase of the stimulus program is for Smart Grid funding. Under this program, nearly 30 of all the customers applied for, and were awarded stimulus money in October. These projects are large turnkey in nature and present us with a significant opportunity. As these Smart Grid projects rollout, it is important to understand the process.

As expected bookings from the stimulus grants will precede revenues. However, since much of the upfront work will be engineering, planning and design we anticipate that revenues will be more likely in fiscal 2011 and bookings more than usual.

Africa remains a region of relative strength when measured by customer demand and the potential for network infrastructure expansion. Harris Stratex has deep long-term customer relationship with key operators in this region. The strong growth is currently inhibited by lacking CapEx spending by operators and potential M&A activity with our two largest customers, which has slowed their spending. While facing these daily challenges, we remain optimistic of a recovery in the coming quarters because of the inherently strong end-user demand for commutation services and mindful of the trust our customers have in us.

We are seeing a number of opportunities for turnkey WiMAX rollout as the technology gains momentum in this region, as well as for energy, security and surveillance or ESS systems. ESS has great interest in Africa due to economic value delivered, especially during a period when operators are challenged to become more innovative in their businesses. We are pleased with the reception of those products and services are receiving.

In our EMER region, which comprises Europe, the Middle East, and Russia, the challenges continue. Backlog is high, but as a reminder, is cued by our Middle East contract. As we mentioned last quarter, product shipments for this particular contract began in Q4 as anticipated, and we expect to begin recognizing the revenue in fiscal Q2. Unfortunately the visibility on this important program is too lacking and will continue to hamper our guidance. The good news is that our customers’ commitment remains solid. In general, the area of these regions where we're seeing increased activities are some Middle East countries and Russia. However, we remain cautiously optimistic on Russia as that has been one of the hardest hit regions with the global downturn.

Across Europe, opportunities are opening up for our WiMAX and IP Backhaul solutions, but again, timing is uncertain. Asia Pacific remains a bright spot for wireless telecom in an otherwise troubled global economy. More than a year ago, we outlined the strategy for renewed focus on the Asia-Pacific region with special emphasis on tier 1 operators. We are pleased to note that we have successfully executing on that strategy, and that revenues and orders are coming in above our internal plan. We captured a new major win in Australia, and also in Australia continues to aggressively rollout the 3G networks. We are seeing solid businesses from microwave backhaul from the two largest operators in the Philippines, namely Smart and Globe. This is in addition to the new win for IP backhaul with a mobile WiMAX operator, plus a new build out in Afghanistan.

Let me now provide you with an update on our efforts to win another tender with BSNL, the world's seventh largest telecommunications company. In our last conference call, we had already won the Urban-I tender to enable wireless access for the southern Indian state of Kerala. At that time, we had also entered a bit for BSNL Rural-II tender. We are pleased to report that in mid-October BSNL revealed that Harris Stratex was among the four winning bids that will be awarded a percentage of the project. We are pleased with our success rate at capturing these tenders. More importantly, we are pleased with the successful execution our team is managing for BSNL.

We like also to stress the fact that India is an increasingly important region to us beyond our success in WiMAX. We are promoting our core IP mobile backhaul platform to key operators and believe that our technology offers a competitive advantage. Despite the current economic challenges, our long-term growth strategy continues to be very encouraging. Discussion of our product strategy and growth pillars gives us an opportunity to focus on success with our 4G WiMAX pillar.

As we just discussed, there are significant revenue opportunities in the Asia-Pacific region and we are capitalizing on them. In August, we received recognition based on the Voice&Data magazine we searched as the top company in India's WiMAX equipment market with an estimated 70% market share. Beyond India, there are also growing opportunities in Africa, Europe, Latin America and the Middle East. Here we are conducting field trials. A key element of our end-to-end offering in WiMAX is our own Wireless Services Gateway, which we are now deploying to BSNL in India. It was developed as a part of the Juniper Open IP development partnership. We introduced this project in a very short timeframe and we will continue to involve it and provide mobile and fixed mobile convergence solution.

As most of you know, our overriding product strategy remains focused on converting to a common IP based microwave platform. This will drive our overall efficiency and contribute to our financial improvement, especially on the gross margin line.

Innovation remains a key cornerstone for our leadership position in the IP mobile backhaul market as we believe Harris Stratex was recognized for its overall innovation achievement. In October, we were awarded the 2009 Wireless Backhaul Distinction Award for our Eclipse IP Wireless Backhaul platform. This award recognized the Eclipse platform’s global reputation as the most comprehensive wireless backhaul solution currently available. I would like to take the opportunity to thank our employees whose dedication to innovation made this award possible.

The Eclipse product platform is leading the needs and driving the growth in microwave IP applications. At the end of fiscal Q1, on a trailing 12-month basis, 39% of our products sales came from this category. This is up from 28%, when we started tracking this metric at fiscal year-end 2008.

In our global network services pillar, our goal is to optimize our customers’ investment, reduce their operating expenses and improve productivity. The previously announced the opening at our NOC, or Raleigh, North Carolina, headquarters to manage networks for enterprise, carrier, and state and local government customers. That announcement was followed by a five-year agreement to provide Open Range Communications with the NOC for its high-speed WiMAX network serving rural America. I'm happy to report that we are executing on this contract, integrating with the network and providing 24 x 7 support.

In September, we partnered with Zain Nigeria to launch a NOC in Lagos. This NOC is a part of a full turnkey project to be completed by Harris Stratex and will include the design, build out network process reengineering, and optimization. We are currently in discussion with another tier 1 operator in that area to optimize their network. Our engineers we keep the customers reengineer their network operation process to optimize cost, performance and improve their operating environment. Service assurance is a key part of the value we bring to the customer. It is built on our core skills and experience in developing and deploying network management solutions to customers globally.

Beyond Africa, we are looking at several large opportunities in EMER, Latin America, and North America. Another launch [ph] was the energy, security and surveillance or ESS has significant market potential but we are still in early stage of exploring based on customers’ feedback from presentations, workshops and field trials we are receiving strong interest for our energy management, hybrid power solutions, security solutions, and the overall control of platform. As a reminder, these are all software controlled. We have our first customer deployment in West Africa and are in final stages of completing a field trial with a tier 1 operator in East Africa.

While the lackluster global economy and budgetary factors may inhibit the revenue ramp we envision, we believe that this business unit has the product offerings and resonate with customers and that ESS will achieve its full potential. We are excited about the early promise of all of our growth initiatives and are seeing early momentum in customer inquiries, field trials and RFPs, in Africa, Europe, and Latin America. All of these initiatives further our ability to cross sell products and services and deepen our customer relationships.

It is not unusual for a WiMAX customer to leave to the IP mobile backhaul or network operations that we supply and vice versa. All of our products and services can be cross sold.

Before we go to Q&A, I would like to reiterate some of the dynamics we are seeing. We have made and will continue to make a reasonable level of investment to prepare for the upturn in our markets. Our management team continues to recognize our company’s operating expenses and further improve our cash management. The activities associated with our restructuring program will continue to be phased in. Compared to this Q1 fiscal-year 2009, we have to reduce total costs by roughly $6.3 million. Excluding Telsima the quantity saving improved to $10.6 million.

Our headcount and facilities review continues as our tools and process improvements. As we have mentioned before, the latter will require most of fiscal-year 2010 for a full implementation. Our expense management program has once again contributed to our positive cash flow for Q1 and enabled us to achieve our ninth consecutive quarter of positive cash flow.

Our Q2 outlook remains cautious due to the global economic and the continued constraints on financing of infrastructure projects. While of the book to bill is 1, we believe it is still difficult to provide financial guidance and want to caution that our actual results could differ from current expectations. Based on these expectations, we are now guiding for the following. Q2 revenue in fiscal year 2010 to be in the range of $120 million to $130 million; gross margin is expected to be comparable to Q1; and total operating expenses in Q2, after normalizing for any agent commissions, are expected to be below Q1 level.

While awaiting the global economic recovery, we will continue to invest in innovative products and services that enable our customers to achieve leadership in their region they serve. We have a strong balance sheet that enables us to invest and prosper. As we believe that all of our efforts will drive shareholder value over time.

At this point, I would like to open the line for questions. Operator, please poll for questions.

Question-and-Answer Session

Operator

Thank you, sir. (Operator instructions) We have a question from the line of Stephen Ferranti with Stephens Inc. Please go ahead.

Stephen Ferranti – Stephens Inc.

Hi, thank you. Good afternoon, guys.

Tom Cronan

Hi, Steve.

Harald Braun

Hi, Steve.

Stephen Ferranti – Stephens Inc.

So I wanted to ask you, revenues came in at the low end of your prior guidance. I guess you provided a fairly wide range of guidance in September. I wanted to see if you might help us think about were there any factors that didn’t come in in the quarter or factors that changed in the quarter that would have led revenues to be at the lower end versus at the higher end. I would imagine given the wide range that you provided there were some swing factors there that could have shifted revenues one way or the other. Can you give us some color in terms of what might have been the delta there?

Harald Braun

We have some projects in the world where we have significant revenues. As we saw before they are continued to be pushed out. That is the case in Africa, in particular, and also in North America. But you see also some of them in Europe. So what we planned there with some of the operators is push out to later in our fiscal year. There were some large projects with significant revenue opportunities, which are pushed out. So that is in our troubled regions. In Africa and EMER, you saw the numbers compared to last year. There are a few but significant projects which are pushed out.

Stephen Ferranti – Stephens Inc.

Okay, that’s helpful. And then two of your major customers in Africa had been in potential merger discussions with other carriers. It looks like those are now off the table. Do you think that that potentially is the first step toward a resumption of maybe more normal ordering patterns in that region?

Harald Braun

Yes. Steve, there is not only one factor, there are several factors in that region, which are challenging us right now. One of which is the consolidation of mobile operators. In particular, that is Zain, and they are talking to several others, and these talks are not over. This is continuing and with that continuation of discussions, the spending is not coming in as we saw it before and as we’ve planned before.

In MTN, we see actually some light in the end of the tunnel. This MTN, Bharti situation you talked about is over for now. And I think we see some activities coming out there now. But it looks like that they are also more backend loaded to our fiscal year-end than anything else. So that is opening up. But vain is not opening up. But there are some other contributing factors. In our biggest region where we do business there are still banking – with almost a banking crisis you might have seen all the reports in the press that seven banks in that particular region went out of business because of their business activities. Of course with that there is a problem of access to capital. But, there is also consolidation happening, and what I would call the GSM camp and the CDMA camp.

Too many operators as we indicated, I think I indicated that already last year, that there are many, many operators, more than 15 operators. They are split in the GSM camp and in the CDMA camp. Now, they are starting to discuss with each other in this particular camp to consolidate. There is another driver where we see in two areas in particular in the CDMA camp zero spending right now for the last couple of quarters.

So it’s not only these two mergers, but our biggest customers where one is opening up. The other one is still struggling to invest and there are more than one factor, which gives us that 50% down turn.

Stephen Ferranti – Stephens Inc.

Okay, fair enough. And last one from me. I wanted to confirm that the Middle East customer that you mentioned as a 10% is not the major $60 million plus opportunity that you had there. Is that correct?

Harald Braun

That’s correct. That’s absolutely correct.

Stephen Ferranti – Stephens Inc.

Just to confirm, also you said shipments have started for the larger opportunity there. Do you expect to start recognizing later in this fiscal year?

Harald Braun

Yes, that’s also correct. We have at the moment a lot of activities going on here in the company to that particular project. And we have now some visibility and we see movement there. So we have numerous people in the country there right now. We see movement and we see that coming in Q2 turn into revenue.

Stephen Ferranti – Stephens Inc.

Do you expect that it will follow at least a somewhat linear pattern once you start recognizing revenues on that project?

Harald Braun

Somehow, yes. Of course the team and couple of leaders from our company while they are talking to the customer, it could be that the next quarter is a little bit more than – almost linear, but not totally linear. Right?

Stephen Ferranti – Stephens Inc.

Yes, never it is. Okay, I appreciate the color guys. Good luck going forward. Thanks.

Harald Braun

Thank you.

Operator

Thank you. Our next question comes from the line of Rich Valera with Needham & Company. Please go ahead.

Rich Valera – Needham & Company

Thank you. Understanding visibility is tough. Each of the last couple quarters, you’ve given what appear to be fairly conservative revenue guidance and then you missed it or coming at the low end of that guidance. Anything that should give us reassurance that this quarter we’re bouncing off the bottom, anything that’s different than the past couple of quarters, other than the fact that we just had lower levels, that would give us some confidence we’re bottoming here.

Harald Braun

Rich, the activities are starting to pick up, that’s a positive sign, in the areas I discussed in the prepared remarks. Of course, the push out of the projects – some of them are pushed into the second quarter. So that gives us also some reassurance that something will happen. That is a good pick up. We are starting to believe that we are in the bottom with the activities we see in the market. The visibility is better than the quarters before.

Rich Valera – Needham & Company

Okay. I know there is not a direct comparison, but the other couple of microwave radio merchant providers are seeing much stronger results – at least have seen more visibility than you guys. Clearly they’re different in geographic exposure, which I think explains part of it. But I think it’s fair to ask the question if we think there are any competitive issues in terms of – are they winning business that you, for some reason, are not able to win, that’s giving them better near term fundamentals than you?

Harald Braun

No. Actually in our recent – which I mentioned also in new customer wins, we didn’t see them. We are acting somehow in different regions. I don’t see that there are some competitive issues with them. So they are acting in different regions and that one of the competitors, they are acting mainly with one customer. The other one we don’t run into that much. I don’t say that there is – only within business against them. There are some of the top four, I would say, which in some region are overly aggressive, and if there is something that we lose again somebody, that is mainly from the top five telecom vendors.

Tom Cronan

Rich, I think one of the difference is that we are telling to people you are talking about, they don’t have the services business. So their order to revenue cycle is shorter than ours. We have a longer order to revenue cycle. So when you come out of these things you tend have a little bit longer recovery periods because the orders starting then takes a little longer to get to revenue. So I think part of it is you are seeing in different business model where if they are getting orders and they are turning them in the same quarter they might see a bounce back a little bit faster than we will, given our revenue cycle and business model.

Rich Valera – Needham & Company

Got it. Another one on the guidance you gave for gross margin and OpEx for the current quarter. You made the comparison for OpEx backing out any additional aging commissions, but it thought the way – at least one of your deals are structured, you would see the benefit on the gross margin line, which would essentially be offset by higher aging commission. So I am not sure why you would back out the commission from the OpEx, but not back out anything from the gross margin in that guidance.

Tom Cronan

Part of it is that we are dealing with – looking forward, now looking backwards, and so we have to look at the quarter on that – how much of that deal is in, how much of it is out. So that has a lot to do with our view of how we are guiding here. And if we had a perfect crystal ball we can all sit down do the math, but we don’t have a perfect crystal ball.

Rich Valera – Needham & Company

Okay. But it is something we should consider, a real operating expense. It’s not like something that’s – it is a real expense. It’s something that you should include in your thoughts of OpEx going forward. It’s just we don’t know how much that conclude.

Tom Cronan

The variable is dependent on a specific deal and then with the gross margins, yes.

Rich Valera – Needham & Company

Understood. That’s helpful. And then in WiMAX, Harald, it’s a very nice accolade you got with respect to your market share in India. Try to reconcile that with the fact I think – I am not sure what you are seeing in terms of WiMAX shipments or revenue right now. So can you just give us any color on what you are currently doing with respect to WiMAX shipments or revenue now? How you expect that to trend over the next couple quarters?

Harald Braun

Yes, I can do that. The shipments into India to existing customers like TATA and Reliance are more on the 16D side because the frequency option, which they want to participate on has actually postponed to next year. The only two companies who have actually frequencies to build out WiMAX products; and BSNL and MTN, so these two guys have the frequencies to build that out, but for 16E products. So 16D, we are shipping right now and this is limited because we are focusing going forward to 16E. Of course the BSNL win is a 16E contract. The tender which we won, we are actually in shipments right now. And we are also coming into deployment mode starting this year, that’s our fiscal year.

From the new tender, I don’t think that we see something this year. But from the initial tender we are starting not only to ship, we are starting later on this year to deploy. That’s a very, very important one. And of course we need to perform there in order to be also recognized for new tenders coming up with BSNL. So overall, we think we are about 10%. That’s what we have in the plan for this year’s WiMAX rollout.

Rich Valera – Needham & Company

I am sorry, what the 10% number out.

Harald Braun

10% of our total revenue what we do in –

Rich Valera – Needham & Company

For the fiscal 2010 year?

Harald Braun

Yes.

Rich Valera – Needham & Company

Okay. That’s helpful. And then one final one, if I could. Just kind of a big picture question. Where do you think – it’s a tough one, but where do you think your new normalized revenue level is as we come out of this? I think it’s probably fair to assume that there is some business out there that may never come back. I don’t know that you automatically assume that you are going to get back into that 170 million, 180 million range. Do you have any guess of where that new normalized revenue level is, as we come out of this?

Harald Braun

Yes. Of course. We are building that up. I think we have some visibility. We have in our biggest growth region some visibility to come maybe first, second quarter of the calendar year 2010. But it looks like more to the mid of next year that revenue levels come up over several stages. So I don’t think that will be a spike. That will be a more linear growth again to the old levels. I see that coming. But there will be lot of spike as it was from the second to the third quarter last year where we saw the whole market panicking. So that will be more linear and I expect to beat that in the first half year of the calendar year 2010.

Rich Valera – Needham & Company

Okay. Thank you.

Tom Cronan

Thanks, Rich.

Operator

Your next question comes from the line of Blaine Carroll with FTN Midwest Securities. Please go ahead.

Blaine Carroll – FTN Midwest Securities

Yes, thank you. Hi, guys. I guess, I’d ask the question a little differently. Is there a shift in the market more toward high-capacity radios versus, say, low-capacity PDH? I am wondering if gave what percentage your revenue would come from high-cap.

Harald Braun

I don’t think that we measure that on high versus low. No, we don’t measure that Blaine. I am not 100% sure of whether that is a pattern what we see there. I would say it’s pretty much distributed. I couldn’t tell you that that is a trend.

Blaine Carroll – FTN Midwest Securities

Okay. Any update on where you stand with Verizon right now?

Harald Braun

Yes, there is movement. But I think I somehow pointed it out in my prepared note. So there is movement and that’s good. We’ve always saw this for Verizon and obviously that we’re the regional contracts and starting to go out and ship.

Blaine Carroll – FTN Midwest Securities

Okay. And then, Tom, if you could, could you talk about cash management throughout the remainder of this fiscal year and give an update on what’s going on with the San Antonio facility in the outsourcing?

Tom Cronan

Okay. So tackling the last one first. Our plans are same, we intend by the end of the fiscal year to have migrated to a contract manufacture relationship and no longer be building products in San Antonio, commencing in the next fiscal year. That’s still a plan that has been planned for several quarters. From a cash management standpoint, we continue to be very focused across the board on both our BPOs and our DSOs, and our efficient use of cash. From a looking forward standpoint, I think we have a couple of challenging quarters that will make us continue to be very focused on very strong cash management as we manage through its revenue cycle.

And then, as we start to ramp back up – I think we are preparing for that by talking to all of our contract manufacturers and adjusting the terms so that we can try and match up as close as possible the BPOs and DSOs. And of course, we have that $70 million facility available to the extent we would need it. But I think we have plenty of cash and we should be fine as we move through this cycle and we will try and manage as close to zero as possible. I don’t think we are going to shell out a lot cash for the next couple quarters.

Blaine Carroll – FTN Midwest Securities

Okay. And the reason for that is to do with closing down San Antonio?

Tom Cronan

No, it has to do with the current revenues which is operating income and loss position more than anything else.

Blaine Carroll – FTN Midwest Securities

Okay. And then lastly, anything more on the competitive front Harald you are seeing. I don’t know whether it’s Huawei coming in or any other technology or more fiber being deployed, anything along those lines?

Harald Braun

Yes. On a competitive front, similar as it was in the last quarter. We are seeing in our growth segment s in particular in Asia-Pacific, but also in Africa, there’s Chinese vendors, not only Huawei alone, maybe that is a little bit of change because it’s also the other companies within. We are seeing them more and more. Of course from this competitive pressure there they can do in some areas much, much more than we can do in terms of bundling or of course the number financing. That is still an issue. That’s not only an issue of ours; I think it’s an issue for everybody within in the communication industry where these companies show up.

On the other side, I have to say also we see signs, what I would call signs of maturity from this particular Chinese vendor because we see them walking away from some deals in some areas in this world. For example, in Latin America. But we saw also on the BSNL award, our shortlist, they were from seventh. So the last place. So they were held seventh. So there are some interesting things going on and we see also on the financing side some signs of caution. I would put the headline out as some signs of maturity in the market from this particular vendor. So we have to observe that a little bit more. But nothing new, except maybe on the ZTE side, and some of the big four – one of the goes a little bit more weak.

Blaine Carroll – FTN Midwest Securities

Okay. I’ll pass the line. Thanks. Good luck.

Harald Braun

Thank you.

Operator

Our next question comes from the line of Ilya Grozovsky with Morgan Joseph. Please go ahead.

Ilya Grozovsky – Morgan Joseph

Hi, thanks. Can you guys talk a little bit about the integration of the Telsima, obviously they have the business that they had before you acquired them. Can you talk about how it’s been going sort of leveraging your sales force and being able to perhaps get some new sales for the Telsima product.

Harald Braun

Yes, Ilya, we can do that. Internally, we had of course in the first nine months what we call an integration program, Telsima integration program, and that is completed. In our last meeting I advised our executive team now for moving from integration to scale. So we think as a management team we have integrated fully Telsima in all areas whether it is in operation, in finance, in marketing, and operation as our COO organization. So what we call 4G business unit is now a full-fledged business unit with a shadow P&L reporting to our COO. This is done. Of course, we have also now one sales team in the five regions and they can sell a WiMAX, and of course also Wireless Services Gateway product.

So, we have enabled the sales force with training, with new people. We hired new people with particular skill set and have all trained our people. So that is also in full swing. But we had also focus strategy. So we have focused region for WiMAX. As I pointed out in the prepared remarks, one of the focus area is of course India, but there are others. There are also Latin America. There are also some in Africa, so there are actually some big tenders in Africa, which we are working with. I would say fully fledged business unit and able sales team, but with a focused strategy. So that would be my take line for that.

Ilya Grozovsky – Morgan Joseph

Okay, thanks.

Operator

Thank you. Your next question comes from the line of Larry Harris with CL King. Please go ahead.

Larry Harris – CL King

Yes, thank you, and congratulations on the market share statistics for India. I just wanted to clarify one item, and that is with the North American revenues being down year over year, to what extent could the de-emphasis to the MegaStar, the Constellation type radios, I guess the legacy Harris radio, has that had an impact on your year-over-year sales comparison?

Harald Braun

No, no. Not at all. Of course, when you have a transition from product line or from several product lines to one product line there’s an impact here. And I think we debated on this on earlier calls. We had to – we absolutely had to shift to an IP mobile backhaul platform. Otherwise, we wouldn’t capture new wins with new customers like what we just had with MTS Allstream, and really with other customers like the tier 1 operators here in the North America. There would be more ways to capture these deals. And existing deals, we are transitioning towards that platforms. And they are transitioning, actions going on in the tier 2 and tier 3 markets. I think it’s about the softness in the industry. I see signs now that we can recover there and that we are going in the right direction. Of course, there are new opportunities. I wanted to point out with the stimulus package that there are new opportunities coming always. So I would say, no. That would be not the major element of why their revenue was down there.

Larry Harris – CL King

So as I prepare for the closure of the San Antonio, are you seeing customers ordering the new IP based products?

Harald Braun

I see customers ordering new IP based products, but they are ordering also some of the existing products, some tier 2 and tier 3 mode that we are going out putting that somehow out of our line of products. But there will be of course maintenance contract. We will support, we will provide services. So we don’t let them hang. What we do is we will have migration strategies at this point for those customers. So that, as we said, will a take while until that maintenance contract is over. But the production, as Tom said, I think during the year and these older products will be discontinued then.

Larry Harris – CL King

Understood. All right, thank you.

Harald Braun

Thanks Larry.

Operator

Thank you. Your next question comes from the line of Matt Martin [ph] with Alien Securities [ph].

Matt Martin – Alien Securities

Hi, good afternoon everyone. I have quick questions, first, I just wanted to clarify, it sounds, Tom, talking about in your comments on gross margin, it sounds like based on the results this quarter and the guidance for next quarter that we are starting to trend up, albeit, it will be bumpy from quarter to quarter, but it sounds like we are starting to trend up and that 33% level is a realistic go for platform numbers. Is that fair?

Tom Cronan

That’s fair.

Matt Martin – Alien Securities

Okay, excellent. And second, there is a lot going on in 2010 that could be drivers obviously with US broadband stimulus that you talked about, Harald, India 3G spectrum issuance, can you rank order how you view those drivers and how it will impact your business? Have you gone any further as to quantify perhaps what those opportunities might be either to Harris Stratex or the Backhaul segment in total.

Harald Braun

Yes, absolutely. As you know when I started here I April last year, I would say, we were somehow (inaudible) in the IP mobile backhaul market. And we wanted to be more relevant and more significant to our customers, therefore we come up with areas – in the adjacent areas, I am actually very happy to see that we are executing this strategy, all of the gross product we have in the beginning are now business units and contributing to revenue. I wanted to see of course as soon as possible this revenue is shifting to the new areas. So that we are not relying only on that one business unit, IP mobile backhaul and of course have a bigger market probably to address. So that is happening.

I see that happening in IP mobile backhaul because the vendors demand mainly driven – and now video application is there and it is increasing there. And I think we don’t need to debate that. And 50% of our business is coming from emerging markets, that is in these markets there is no existing infrastructure, and with this non-extinct in infrastructure, we have a very good offering for our customers, not only now, in the microwave point-to-point area, but also in the point-to-multipoint area with our WiMAX portfolio. So this is a big driver in particular in Asia-Pacific and also in Africa.

So we are seeing that and of course that allow us also cross selling opportunities. We have one cross selling opportunity where we latched with a WiMAX win in India and now moving to a microwave deployment. There is this cross sell opportunity. And that’s very significant for us. But we have another opportunity where latched with a network operation center where we have the chance to capture backhaul business. And all these drivers coming to this infrastructure area, but also with our Wireless Services Gateway product portfolio, which is an application product layer 427, we anticipate that we can capture some market share together with our other offerings which we have, for example, WiMAX together with the gateway deployed in both BSNL tenders.

So, the drivers are in place and we can participate now in a bigger scale. So that I am very happy that we are executing in this tough environment our strategy. And of course, this is not easy but makes us, it is our belief, more relevant to our customers. I think the drivers are undoubtedly in place in all regions worldwide.

Matt Martin – Alien Securities

Got you. How would you rank order, I guess, if you just narrowed it down to the impact of spectrum issuance in India versus broadband stimulus in the US when you look out to 2010 and 2011, how would you rank all of those? Have you got any reason to quantify perhaps what those opportunities could mean, just get me a ballpark.

Harald Braun

Yes, I got that. Quantification is highly difficult. So I have a better visibility in India on the WiMAX deals than I have on the stimulus package because we are still waiting the awards, on which customers are awarded what amount of money, and of course, then it is up to them to decide who is building it out and with what technology they want to build it out. So that is a little bit of crystal ball. What we know is the statistics who from our customers did apply in the first place for money. The good news there is also that it is not only the mobile broadband excess stimulus money, it is also the Smart Grid, which is a stimulus part available. That is a good one. So I really cannot compare it because the visibility on the stimulus is really, really very nebulous, very, very challenging.

In India, I will rank that at the moment, yes, visibility is there and movement is there. That’s the good thing. So they are moving and actually BSNL is moving very fast because of the auction come up next year. Because they can now capture the market share before the others gets spectrum and can also build out WiMAX systems and products. So the movement is faster at the moment on the WiMAX side. So I rank them higher when I needed to compare this two. But very difficult to compare it in a ranking order because of the company, while this is clear, our bread and butter business is IP mobile backhaul and then followed by WiMAX, followed by Wireless Services Gateway and followed by services. Maybe services we need to put on the second place because we had a significant amount – last quarter 22%, Tom, something like this?

Tom Cronan

Yes, it’s around – the services continued to grow and we are seeing good trends on services side.

Matt Martin – Alien Securities

Was that services 22% of –?

Tom Cronan

That was actually in Q4. We don’t have numbers for Q1 yet.

Matt Martin – Alien Securities

Okay, got you.

Harald Braun

That will be the ranking order. Is it helpful?

Matt Martin – Alien Securities

That’s very helpful. That’s very helpful. One last question and digging into India a little there. Can you remind us of what the timing of recognition on the urban BSNL tender? Can you compare the size of the tender, the urban versus the rural tender? I understand that you are sharing the rural tender with three other vendors, but I guess what’s the size of the opportunity?

Tom Cronan

On the value recognition question, there are some milestones I think we have to get through, but the current expectation is that it would be in our fiscal Q3 time period, we would be able to get back those expectations and then start to recognize revenue.

Matt Martin – Alien Securities

Got you. And just sizing it to opportunities?

Harald Braun

On the size, I think, on this size it is somehow I think – under new one, I have statistics here. This is in principal for all the participants, 7,000 WiMAX base stations and there is a potential in the lower ranks of the first three or four selected in excess of 10 million. That’s I think when you have the lowest (inaudible) 450. So that would be in excess of 10 million. That’s my estimate. And that is of course not awarded and of course not negotiated yet.

Matt Martin – Alien Securities

Got you. Okay. That’s very helpful. Great, thanks, guys.

Tom Cronan

Thanks.

Harald Braun

Thank you.

Operator

Thank you. Our next question comes from the line of Kevin Dede with Jesup & Lamont. Please go head.

Kevin Dede – Jesup & Lamont

Thanks. Harald or Tom, can you talk to gross margins a little bit as they relate to the progress you are making in migrating to one platform? It seems to me that they came a little bit stronger than expected this quarter. Do you still sort of see a mid-30s ultimate target when you are completely off legacy product and completely outsourced?

Tom Cronan

Yes. So the answer to that is yes. I think the current set of improvements are related to – more to cost controls across the board whether it relates to logistics or overhead expenses and also negotiations with contract manufacturers and supply chain. So I think that we are not really seeing the total benefit of moving to a single platform yet and so we would to see further benefit as we consolidate into a single platform and a 100% CM strategy.

Harald Braun

And Kevin, on the technology side, we see a tremendous progress in the movement of the roadmap. As we said last year, we are moving on from the five platforms to one platform and we are seeing tremendous progress there and delivering now against that plan, what we defined last year. So that is actually very, very good.

And you see it also on the features which we have got – which we got some innovation award and some customers are buying us because we have some differentiation in features. So that is actually very encouraging how we rolled that out.

Kevin Dede – Jesup & Lamont

Can you characterize where you are on that roadmap versus the last time we had a chance to talk about at the end of last quarter and whether or not you think your targets might be a little bit higher than they were before?

Harald Braun

Higher in regard of what?

Kevin Dede – Jesup & Lamont

Your gross margin.

Harald Braun

I would stick to the target I think, Tom?

Tom Cronan

Yes, I think the target is – so the difficult thing in our forward-looking forecast is that of course, now with the average selling prices going to be in this time frame, but we think we are preparing ourselves to be in a good position even with pretty high levels of price degradation across the board. So it depends on where one sees the curve on the average selling price, but we are confident in the 35% mid-30s range even with some pretty steep curves – downward curves on the ASPs.

Kevin Dede – Jesup & Lamont

Okay. Also, how – you talked about your WiMAX share in India. Is there any way you can give us a feel for where your core business might be in India and how you might be able to leverage your position in with some of the career deployments there given that area is growing so rapidly?

Harald Braun

Yes. Yes, absolutely. On – as I said, the – when I came, we had a strategy, we have a renewal of our strategy in that region, on the whole Asia-Pacific region wide and the entry of course in India came with the acquisition we did in the beginning of the year, but of course we don't stop there, Kevin. That is an entry point. As I said already, with one customer we have a cross-selling opportunity where we now are having contracts for Microwave and we are working on one and one major, major tender, which will be awarded I think during the next quarter, which is more in the Microwave side.

So for me, it would be a perfect and the strategy is that WiMAX may be linked with Microwave and services. That is somehow what we are seeing right now there. So in this suite area – the cross-selling opportunity between this suite, we are strong at the moment in WiMAX, but cross-selling into Microwave. But another tender is purely Microwave. So both areas we are pursuing there and of course also the service area, which is a little bit more challenging there.

Kevin Dede – Jesup & Lamont

Okay. Would you mind giving us a little more color on the Juniper relationship? I know that Juniper has launched a new platform. I’m wondering if the software you’ve developed can ride on top of that and I’m also wondering if you shelved the ASN Gateway that came with the Telsima deal.

Harald Braun

Yes, I can do that. So first up of course, in this acquisition we did, we had an – we got alternative [ph] Gateway and I would say we completed that ASN Gateway. We had plans to go in this direction because we believed there is for us a play with our products together to connect mobile microwave to the routing cloud in the network. So when we were completing that ASN Gateway – so we didn’t shelf that, we completed it, let me put it this way.

And during the completion, we had discussions with Juniper and Juniper had an interest in that and of course, we had an interest that. What the Juniper interest was is to have principal the mobile – the mobile network space access or the mobility access for us and we had an interest to use the routing engine or the routing platform from Juniper.

So the relationship was formed on their – on the new platform, that is correct. And you know, outlet they had that development program. As we are part of the development program and now we are focusing – immediate focus is on how do we bring WiMAX together with our ASN Gateway into BSNL, because we have a deal with the ASN Gateway together with WiMAX in the books, right? And that is important. So that is our immediate focus with them to deliver that program.

For Juniper, I think it is important because we can – this ASN Gateway functionality can be put in their M and MX Series routers. So – and they can package that together with this router platform. And I think they are very interested in that given also the competitive impact on the (inaudible) situation. So that is of course their interest and now we will see where we take that whole partnership. So we are in close discussions with them.

Kevin Dede – Jesup & Lamont

Can you give us any early indications on the impact you are having with that partnership in the marketplace or is it so – ?

Harald Braun

I think – of course, we have this immediate focus as I said, on the build-outs right now and to get that started that they can use our software and of course, we can sell our product. So that is in early stages and of course, you saw the announcement from Juniper last week. So I think it’s very early to see where we take that whole partnership. Yes? But it’s – it is an inspiring and is also an exciting partnership.

Kevin Dede – Jesup & Lamont

Lastly, can you just give us some insight on the broader market in U.S. with – well, obviously you spoke to Verizon already, but can you give us an update on AT&T and maybe your insight on competitive leverage at Clearwire given they may have opened up a little bit?

Harald Braun

Yes. So on AT&T, I have to say there will be an RFP coming out this month and that of course is very encouraging, right? And Verizon, I did already talk, so there we see a movement there. And AT&T, they will come up with an RFP this month and that of course is all-hands-on-deck-here and on both, we see a movement there in this direction.

So on – for Clearwire, for me, the – in contact on all levels, of course there is all the time an opening. And we are encouraged and very happy actually to see that is starting their build-out and aggressively they build out because that will help the WiMAX market. We are happy to see that build-out happening. And of course, we see Clearwire has all the time a potential to surprise and to take partners and there is all the time an opening.

Kevin Dede – Jesup & Lamont

Okay. Last question from me is on BT. I know that you are working hard with them. I’m just wondering if you can give us some insight on to how that’s developing.

Harald Braun

Yes. I was there by myself three weeks ago and we have quarterly projects we have used with them. I’m happy to recall that they are very happy and qualifying our product and as it is with a lot of Tire 1 operators, there is a long process from award and contract signing to get into their procurement systems and then roll out to the field. So we are in – I would say, in a 75% stage of getting from whatever awards last year to deployment and getting to their internal process. So I think we are 75% sure, which is a normal situation. I learned it by myself and I know it from the past of course and all encouraging signs.

Kevin Dede – Jesup & Lamont

Very good. Thanks, Harald for entertaining the questions.

Harald Braun

Yes.

Tom Cronan

Thanks.

Harald Braun

Thanks very much, Kevin.

Operator

Thank you. Our next question comes from the line of James Faucette with Pacific Crest Securities. Please go ahead.

James Faucette – Pacific Crest Securities

Thank you very much. Most of my questions have been answered. But I was hoping that you could just prioritize what the geographies that we should expect contribute to the linear improvement that you are expecting? I mean, should we expect faster contribution from India than the U.S. and other developed markets coming on later or can you just help us think about which markets are likely to contribute in much of order to your expected growth as we go through the time of 2010 and beyond?

Harald Braun

Yes. James, very strong showing in the first quarter of Asia-Pacific. And I wouldn't say only India, I would say also Philippines, I would say also Indonesia, I would say in that area Australia. So very strong showing there, very big momentum going on. I would even say that there were a little slowdown in the Philippines where we have some big build-outs coming on with all the natural disasters there over the last quarter that hampered a little bit the situation there. That was a little bit tough and of course, lot of service activities for us, not necessarily that our products not functioning but just helping the customers and helping our customer to provide constant services, which is – which was by the way very, very positive.

So that is, at the moment, the star area, followed by North America. We see North America now going in different areas. Mobile operators are starting to move state and local government business, utility companies, and enterprises starting to move followed – that are the two areas where, as I said, we have a good momentum going and of course, I mentioned already the areas which are at the moment a little bit in trouble and in EMEA and in Africa we – at the moment, actually we have very effective leaders here where we had intensive meetings in how to can – how we can help and how we can recover there with the customer together. So those are the areas, which I noticed are areas at the moment the two troubled areas.

James Faucette – Pacific Crest Securities

So as we except – North America in particular, is becoming a more contributor perhaps next calendar year. How important a role does North American market play to continue gross margin improvement on just from a pricing and margin standpoint is kind of my first follow-up question. My second question is specifically on Clearwire. What do you need to do either in terms of product or in terms of being able to service them in order to secure – ?

Harald Braun

I’ll take the second one and then Tom will get to the first part of it. So Kevin asked already about Clearwire, right? So – and you – I see there is a follow-up question to that. So first of all, what do you need to do? Holding contact, right, and see how fast Clearwire is rolling out and of course show that we can do, as we did all the time, very well, end-to-end solutions in North America and also end-to-end solutions in Asia-Pacific with some very big rollout, actually very, very bigger at the moment than Clearwire has in India, so – very bigger.

So that means showing our capacity, our supply chain, our logistics, and our service capability and of course, our product capabilities at work and make sure that people know that. I think we are prepared, we have the right feature set, we have the right product, we have the right service people on site, we have the right logistics, and we have the right supply chain to make sure that we can service a huge rollout from Clearwire, make sure that we are constantly here with – in contact with them and see how that whole thing develops.

So that, I would say, was – and would be for me a one – very, very important one to consider, we have to stay engaged.

Tom Cronan

Yes. To the – answer to the first part of your question, North America is very important to the overall margin strategy. We continue to get – as does everyone in telecom industry, we see North America as being a place where we can get good contracts, good payment terms and good margins, an important part of the business. And as we move to more IP devices in North America, we expect to both increase customer cost-effectiveness, as well as our margins.

James Faucette – Pacific Crest Securities

That’s great. Thanks very much.

Harald Braun

Okay.

Operator

Thank you. We have time for one more question. Our last question comes from the line of Rich Valera with Needham & Company. Please go ahead.

Rich Valera – Needham & Company

Thank you. Quickly just on the WiMAX. Harald, I just wanted to clarify, did you say you felt WiMAX could be 10% of your fiscal 2010 revenue?

Harald Braun

Yes. We anticipate what we have in the plan that we – from our 10% – from our fiscal year ’10 revenue, 10% of that we are anticipating in WiMAX.

Rich Valera – Needham & Company

And what percent of your first half revenue do you expect it to be?

Harald Braun

First half of this fiscal year?

Rich Valera – Needham & Company

Yes.

Harald Braun

Maybe from that portion, 30 – from 30%?

Tom Cronan

No. First half of the year? So we see a ramp in the back half of the year, Rich. So a lot of the 10% coming is going to be in the back half and a portion –reason for that is that the rollout for – a couple of the major WiMAX rollouts are in Q3 and Q4. And so we see the revenue primarily in Q3 and Q4 and so that’s why – in those quarters it will be more than 10%; on the year, we expect it to be 10%.

Rich Valera – Needham & Company

And are those – is that 10% predicated just on the urban when you have in hand or is it also predicated on getting the rural tenders?

Harald Braun

No, they have not. No, as I said, we have not only BSNL right now, right? So we are shipping right now, it is Tata, it is Reliance, it is Neotel in South Africa, it’s TOT in Thailand, and they are some other customers, right? So it’s not only BSNL.

Rich Valera – Needham & Company

Okay. That's helpful. Thank you.

Operator

Thank you. And at this time, I’d like to turn the conference back over to management for closing comments.

Mary McGowan

Thank you all for joining us on this call and the webcast. Harris Stratex is planning to attend the Stephens Fall Investment Conference on November 17th in New York and the Needham Growth Stock Conference in January, also in New York. We hope to see many of you at those events. Thank you and good day.

Operator

Ladies and gentlemen, that does conclude our conference for today. We thank you for your participation and you may now disconnect.

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Source: Harris Stratex Networks, Inc. F1Q10 (Qtr End 10/02/09) Earnings Call Transcript

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