Occam Networks (Nasdaq: OCNW) continued to ride the broadband stimulus wave in Q3 as revenue rose to $29.8 million, up from $23.8 million in Q2 2010 and $21.7 million it reported in Q3 09.
Company Q3 gross margin was $11.9 million, or 40 percent of revenue, compared with $9.8 million, or 41 percent of revenue, for Q2 2010. Similar to Q2, the contributor to Occam's Q3 results were a number of broadband stimulus and non-stimulus broadband contracts and a new product set.
During the third quarter, Occam won contracts with stimulus award winners Marquette-Adams Telephone Cooperative and Wabash Mutual Telephone for FTTH networks using Gigabit Ethernet and GPON in addition to a non-stimulus FTTH project win with Perry-Spencer Rural Telephone Cooperative (PSC).
In addition to new broadband project wins, Occam made inroad into the indoor Optical Network Terminal (ONT) trend with the introduction of its ON 2505 and 2506 ONTs.
Along with new customer wins and products, the major highlight of Occam's second quarter was that in September broadband access rival Calix (NYSE: CALX) announced a bid to acquire Occam for $171 million in cash and stock.
Because of its pending deal with Calix, which is set to be completed in either Q4 2010 or Q1 2010, Occam is not providing Q4 or future business outlook.
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