Casa Systems, Inc. (NASDAQ:CASA) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 05:00 pm ET


Casa Systems, Inc. (NASDAQ:CASA) Q3 2018 Earnings Conference Call Transcript


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Jerry Guo

to carry live traffic as they finalize their plans for full DAA deployment. We're encouraged by what we are hearing from the large MSOs regarding their plans to move to DAA and virtualization. We are already seeing a few early remote PHY deployments as certain MSO begin implementing DAA in their networks. We believe that DAA deployments will continue to wrap.

In our wireless business, we noted on our Q2 results call, we are working on final certification and shipment of our $20 million in purchase orders. In the meantime, trials are progressing with our Apex Strand Microcell, Apex Lifestyle Santos and Axyom 4G/5G Packet Core. These trials tend to run for longer periods as customers become familiar with new solutions and implement operational changes that are required to deploy and to support that. I'm especially pleased to report that these trial engagements are occurring with customers globally.

We believe initial traction in our wireless business will be from our Apex family of the indoor and outdoor radio access network products and the small cell core. We expect revenue from our Axyom 4G/5G mobile core solution in 2019 and we are already participating in multiple tier-one mobile service providers 4G/5G core evaluation and the trial processes. We are also seeing significant interest in our Strand-mounted microcell, which solves key challenges associated with the backhaul, citing and power.

The Stand mounted microcell, for both license and the CBR spectrum, was specifically designed for three types of customers. One, mobile network operators, to enable them to meet urgent densification needs without the complex deployment issues associated with a haul or tower-mounted cells. Two, cable MSOs, to deploy their own wireless coverage and to sell its complete small cell site solution including backhaul, space and power to mobile network operators, and three, converged service providers with both cable and wireless service offerings. As this product is designed to help drive increased traffic over MSO networks, we believe it will also have a beneficial impact on our CCAP core capacity and the DAA sales as well.

In our fixed telco segment, customer reception and engagement for our Axyom, Virtual BNG and Multiservice Router, has been very strong and in fact we added our first customer for all Virtual BNG product during the third quarter. The Virtual BNG router is one of the two current applications associated with this virtualized solution. The other application includes a service provider edge router. The Virtual BNG router can be deployed independent of or along with Casa's XGS-PON/OLT including our virtual OLT solution.

Service providers have their interest in Casa's NFV, this aggregated cloud model and architecture that supports seamless scalability and the use of commodity servers and open switches. The current edge routing markets seems to be ready for disruption and Casa is working hard to seize this opportunity.

As I look at what did we achieve during the quarter and our outlook for the balance of fiscal year 2018 and 2019, I remain as optimistic as I