Occam Networks' Q2 earnings benefit from broadband stimulus, European awards

Occam Networks' (NasdaqGM: OCNW) second quarter results illustrated how the multiservice access platform (MSAP) vendor continued to ride the wave of new broadband stimulus awards and its growing presence in the European telecom market.

In Q2 2010, Occam reported $23.8 million in revenue, an increase over the $22.3 million it reported in Q1 2010 and $20.1 million in Q2 09. The company's Q2 gross margin was $9.8 million, or 41 percent of revenue, compared with $9.8 million, or 44 percent of revenue in Q1 2010. Meanwhile, Q2 2010 gross margin was $8.0 million, or 38 percent of revenue.

"This quarter marked the start of first revenue shipments on stimulus-related customer orders," said Bob Howard-Anderson, president and CEO of Occam in a release. "Service providers who have secured government funding are now moving ahead with their plans, and we look forward to the continued adoption of Occam solutions into their network plans." 

Amidst strong competition from fellow upstart Calix (NYSE: CALX) and even incumbent vendor ADTRAN (Nasdaq: ADTN), both of which are continually touting their broadband stimulus wins, Occam signed multiple deals for its BLC 6000 product with various Tier 2-3 ILECs embarking on their respective broadband stimulus projects. Included in that customer list are Big Bend Telephone, Central Scott Telephone, Rural Telephone/Nex-Tech, and Hardee County, Florida, and Slic Network Solutions.

Across the pond, NYnet leveraged Occam's platform to build a GPON-based open access network that will deliver 100 Mbps to its customers at Scarborough Business Park, England.

With Q2 2010 now closed, Occam's Q3 revenue forecast will make Wall Street smile. Occam expects a high single digit to low double digit percent revenue increase in Q3 2010.

For more:
- see the earnings release here

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