On February 12, The Wall Street Transcript interviewed Mory Ejabat, co-Founder, President and CEO of Zhone Technologies, Inc. (ZHNE). Key excerpts follow:
TWST: What distinguishes you from companies that are somewhat similar?
Mr. Ejabat: We believe our technology is more advanced than our competitors. Our products utilize a packetized technology which includes many interfaces that are different than other competitors. Our products are mainly used by carriers that want to upgrade their networks from their traditional circuit switch and TDM network to a packetized network.
TWST: Would you tell us about your products and solutions?
Mr. Ejabat: Our main product is the MALC (multi-access loop concentrator), which is based on an SLMS (single line multi-service) architecture. Carriers use this SLMS architecture to provide different services on one line for their customers. That line to the customer can be either a copper line over an existing telephone line, or a fiber line, which is FTTP or FTTx. Over this single line, carriers can offer high speed Internet access, voice over IP, and IPTV.
TWST: What are the key elements in your business strategy as you look out over the next three to five years?
Mr. Ejabat: Our product strategy is to increase the bandwidth for our customers so they can offer more and more enhanced services. In addition, our strategy is to penetrate more customers in emerging countries in areas such as the Middle East, and Eastern Europe. Within Western Europe and the United States, our strategy is to penetrate Tier 2 and Tier 3 carriers.
TWST: What would you reasonably expect the company to look like in about three to four years?
Mr. Ejabat: Our target is to get to about 10% operating profit and grow our revenues year-over-year by between 20%-25%.
TWST: What would be the two or three best reasons for the long-term investor to look at you closely?
Mr. Ejabat: We have great technology, we have a good customer base, we are very geographically diverse, and we are in the midst of a growing industry - one where the carriers are anxious to deploy new enhanced technologies to deliver voice over IP, IPTV, and broadband.