At present order levels ordspråk

At present, order levels clearly reflect lower carrier capital spending and the resulting desire of our customers to reduce inventories sharply.

It's pretty clear that all the pieces for capital spending are in place, including rising sales, lower inventories and increases in shipments and orders, ... So, despite what CEOs say in public, there's no question that capital spending -- outside of aircraft and telecommunications -- has bottomed and is on the way up.

Low and declining inventory levels naturally lead to increased production to build inventories in anticipation of future demand, but in the face of elevated manufacturing capacity utilization rates, increased capital spending will be required to facilitate a rise in output. Since our last capital spending forecast in December 2005, significant increases in spending for 2006 have been announced, suggesting growth in capital expenditures of about 10 percent this year.

We have been working with customers for over 10 years implementing automated supply chain management techniques. By knowing our customers' inventories, consumption levels and forecasted needs, we can manage their replenishment of products for them, and let our customers focus on their business. It's convenient and the benefits to customers include significantly lower operational expenditures as well as increased service levels.

There are all sorts of questions - (from) what they're spending their money on, to what they're doing to reaccelerate sales growth, to what they're doing to try to optimize their capital investment. There's little visibility at the present time as to when these levels of spending are going to generate higher levels of return on investment.

Reduced and/or deferred capital spending and increased pricing pressure are resulting in lower overall revenues, particularly in the United States,

Since the beginning of January, a number of our customers have been revising the timing of their capital spending and rescheduling or canceling existing backlog, resulting in the postponement in delivery of equipment. Therefore, we expect orders and revenue to be below our original targets.

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Since the beginning of January, a number of our customers have been revising the timing of their capital spending and rescheduling or canceling existing backlog, resulting in the postponement in delivery of equipment, ... Therefore, we expect orders and revenue to be below our original targets.

The first quarter traditionally is the weakest period of the year for technology purchases, and many of our customers chose to reduce or defer capital spending decisions until they see a sustained improvement in their businesses.

As more wireless companies encourage customers to try new services, it's becomes more difficult for the customer service representatives to be fully trained and kept apprised on the latest products being introduced. The downside is the carrier runs the risk of decreasing customer satisfaction and losing customers to other carriers. Since future switching levels are three times as high among customers who need to re-contact the carrier two or more times to get the inquiry resolved, the challenge for wireless providers is to provide contact channels that can offer an informative and efficient experience for their customers.

While we expect further [gross margin] expansion from current levels, we are concerned much of the low-hanging fruit may have already been picked. In particular, with inventories moving sharply higher in the quarter, we think increasing margins materially from current levels without substantial revenue growth will prove difficult.

Combining the data on construction spending, manufacturing inventories, capital goods shipments, and wholesale inventories released since the GDP report, we now see fourth quarter GDP being revised up to 1.5 per cent from the advance estimate of 1.1 per cent.

Combining the data on construction spending, manufacturing inventories, capital goods shipments, and wholesale inventories released since the GDP report, we now see fourth quarter GDP being revised up to 1.5 percent from the advance estimate of 1.1 percent.

We do not believe that September was the bottom, but December or March may be. We recognize that carrier capital spending is forecasted to decline, but given our discussions with customers regarding their plans for new product launches and continued inventory reductions, we believe that December or March can represent the low point of the industry downturn.

Although we expect consumer spending to slow sharply in the fourth quarter, to below 2 percent, as a result of lower auto sales, we expect that GDP will still edge back above 4 percent on an inventory rebound, higher business spending, and hurricane recovery spending.

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