0001021408-01-509274.txt : 20011107
0001021408-01-509274.hdr.sgml : 20011107
ACCESSION NUMBER: 0001021408-01-509274
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011102
ITEM INFORMATION: Financial statements and exhibits
ITEM INFORMATION:
FILED AS OF DATE: 20011102
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: C COR NET CORP
CENTRAL INDEX KEY: 0000350621
STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
IRS NUMBER: 240811591
STATE OF INCORPORATION: PA
FISCAL YEAR END: 0630
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-10726
FILM NUMBER: 1773936
BUSINESS ADDRESS:
STREET 1: 60 DECIBEL RD
CITY: STATE COLLEGE
STATE: PA
ZIP: 16801
BUSINESS PHONE: 8142382461
MAIL ADDRESS:
STREET 1: 60 DECIBEL ROAD
CITY: STATE COLLEGE
STATE: PA
ZIP: 16801
FORMER COMPANY:
FORMER CONFORMED NAME: C COR ELECTRONICS INC
DATE OF NAME CHANGE: 19920703
8-K
1
d8k.txt
C-COR.NET CORP. FORM 8-K 11/2/2001
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 2, 2001
C-COR.net Corp.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Pennsylvania 0-10726 24-0811591
------------------------------- ------------------ --------------------
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
60 Decibel Road, State College, Pennsylvania 16801
------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (814) 238-2461
(Former name or former address, if changed since last report.)
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Number Description of Document
------ -----------------------
99 Analyst Day Presentation Materials
Item 9. Regulation FD Disclosure.
The Registrant held an Analyst Day at its headquarters located at 60
Decibel Road, State College, Pennsylvania on Friday, November 2, 2001 that began
at 9:00 AM and ended at 3:00 PM (ET). During an initial general session,
corporate management provided attendees a strategic and financial overview of
the Registrant with a particular focus on its recent acquisitions and ensuing
alignment into three business divisions that, together, offer the broadband
market a full complement of advanced network products and services.
Following the general session, the Registrant held smaller concurrent
sessions, during which the Registrant's divisional presidents and technology
leaders focused specifically on how the Registrant's products and services
provide value-added benefit to customers by supporting the integrity of the
network through its complete life cycle.
The information provided to participants during the day has been
attached to this Form 8-K as Exhibit 99.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
C-COR.net Corp.
(Registrant)
November 2, 2001
By: /s/ David A. Woodle
-----------------------------------------------------
Name: David A. Woodle
Title: Chief Executive Officer
EX-99
3
dex99.txt
ANALYST DAY PRESENTATION MATERIALS
"We're taking on network integrity."
C-COR
"The One Solution for Network Integrity"
Presents:
The Faces of C-COR
Analyst Day 2001
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Some of the information contained in this presentation constitutes
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements represent the Company's judgment regarding future
events. Although the Company believes it has a reasonable basis for
these forward-looking statements, the Company cannot guarantee their
accuracy and actual results may differ materially from those the
Company anticipated due to a number of uncertainties, many of which
the Company is not aware. Factors which could cause actual results to
differ from expectations include, among others, capital spending
patterns of the communications industry, the demand for network
integrity, the trend toward more fiber in the network, the Company's
ability to develop new and enhanced products, the Company's ability to
provide complete network solutions, continued industry consolidation,
the development of competing technologies, the global demand for the
Company's products and services, the Company's ability to successfully
implement three new business divisions, integrate acquisitions and
achieve its strategic objectives. For additional information
concerning these and other important factors which may cause the
Company's actual results to differ materially from expectations and
underlying assumptions, please refer to the reports filed by the
Company with the Securities and Exchange Commission
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Overview of Today
. Provide a solid understanding of C-COR's
- Plans
- People
- Products
. Includes a tour and demos
. Establishes a foundation for evaluation
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
C-COR ANALYST DAY
09:00-10:00 Welcome
Corporate Overview
Financial Summary
Network Requirement Trends
10:00-12:30 BCP Overview}
BNS Overview} Concurrent
BMS Overview}
12:30-13:00 LUNCH
13:00-14:30 Tour
14:30-15:00 Wrap-Up/Questions
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
C-COR Vision
A world-class, growth-oriented leader in
providing quality, global market-focused
products, services and operations management
solutions which enable cost-effective, interactive
information services over broadband
communications networks.
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Corporate Overview
. Approximately 2000 [PICTURE]
employees
. Traded on Nasdaq, [PICTURE]
Symbol CCBL
. Home page at
www.c-cor.net
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Corporate Overview
. Global HQ:
- State College, PA [PICTURE]
. Three Divisional
Headquarters
Meriden, CT Denver, CO Pleasanton, CA
[PICTURE] [PICTURE] [PICTURE]
Products Services OSS Solutions
[LOGO] C-COR.net
The One Solution for Network Integrity
Global Reach
[LOGO] C-COR.net
At the core of confidence
[MAP]
"We're taking on network integrity."
Key C-COR Customers
[LOGO] Adelphia [LOGO] ERICSSON [LOGO] Telenor
[LOGO] AT&T [LOGO] eKabel [LOGO] UNITED GLOBAL COM
-------------------------
AOL Time Warner
-------------------------
[LOGO] Charter [LOGO] CABLEVISION [LOGO] EWB
COMMUNICATIONS
[LOGO] COX [LOGO] BLUE RIDGE [LOGO] ntl: [LOGO] UPC
COMMUNICATIONS COMMUNICATIONS
[LOGO]
[LOGO] COMCAST(R) [LOGO] ROGERS(TM) [Picture]
CORPORATION Titus
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Integrated Capability
------------------- -------------------- -------------------
Broadband Broadband Broadband
Communications Network Management
Products Services Solutions
------------------- -------------------- -------------------
--------- -------------------
ADC Valley Cable ------------------
--------- ------------------- MobileForce
------------- Technologies
--------- Aerotec ------------------
SVCI -------------
--------- ------ ------------------
ACSI Convergence
------ ------------------
---------------- ------------------ ------------------
Legacy C-COR Worldbridge Legacy C-COR
Products ------------------ OSS Solutions
---------------- ---------------------- ------------------
Legacy C-COR
Services
----------------------
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
C-COR Top Level Organization
David Woodle
Chairman
&
CEO
Bill Hanelly Ken Wright
Chief Financial Chief Technology
Officer Officer
David Eng Gerhard Nederlof Mary Beahm Frank Chelko
Corporate Corporate Corporate Corporate
Vice President Vice President Vice President Director
Americas Business Europacific Business Human Resources Quality Assurance
John Caezza Doug Engerman Paul Janson
Division President Division President Division President
Broadband Broadband Broadband
Communications Management Network
Products Solutions Services
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
2001 - The Year that Was...
. The Industry Acts . C-COR responds
- Consolidation continues - Establish realistic plan
- Economic recession - Re-align infrastructure costs;
retain flexibility
- Capital budgets cut
- Focus on investing in strategic
- Excess inventory builds plan
- Upgrades pushed out - Develop strong retention
program
- Technology moves ahead
- Exit slowdown stronger than
entered
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
C-COR Four Step Plan
1. Extend Product Line
[LOGO] 2. Integrate Network
"The One Solution for Applications
Network Integrity"
3. Offer Operations
Management Solutions
4. Provide Quality
Services
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Desired Balance Achieved
Product Mix
[PIE CHART] [PIE CHART]
RF SERVICE FIBER RF SERVICE FIBER
Customer Mix
[PIE CHART] [PIE CHART]
2 over 20% 4 at 15%
[LOGO] C-COR.net
The One Solution for Network Integrity
Provides data that demonstrates over last 3 years C-COR has more diverse product
and customer mix.
Product Mix
-----------
1998 2001
RF 87%, Service 5%, Fiber 8% RF 43%, Services 15%, Fiber 42%
-- - - -- -- --
Customer Mix
------------
1998 2001
2 Customers 4 Customers accounted
accounted for for approx. 15% each
approx. 20% each
"We're taking on network integrity."
Solid Financial Results
. Created solid cash position
. Grew Quarterly Rev's over 15% annualized
. Doubled Company Valuation
[CHART]
CASH QTRLY REV MARKET CAP
[LOGO] C-COR.net
The One Solution for Network Integrity
2 sets of bar graphs depicts improved levels of cash, quarterly revenue and
market cap from Oct 98 to Oct 01.
Oct 98 Oct 01
Cash 950k Cash $58m
--- --
Q Rev 32m Q Rev 52m
-- --
Mkt Cap 110m Mkt Cap 225m
--- ---
"We're taking on network integrity."
Lifecycle Phases
PLANNING DEPLOYMENT
[LOGO]
OPERATIONS ROLLOUT
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Lifecycle Phases
Planning Deployment Roll Out Operations
[GRAPHICS]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Customer Spending Waves
[CHART]
PLANNING DEPLOYMENT ROLL-OUT OPERATIONS
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Global Rebuild Status
[CHART]
Rebuilt Homes Non Rebuilt Homes
Data from CED/Ellis Research and Company Sources
[LOGO] C-COR.net
The One Solution for Network Integrity
Chart compares % rebuilt networks vs. % non-rebuilt networks in four
regions: US, Europe, Asia, Lat. America.
US = 70% rebuilt, 30% non-rebuilt
Europe = 25 " , 75 "
-- --
Asia = 30 " , 70 "
-- --
Lat. America = 35 " , 65 "
-- --
"We're taking on network integrity."
Service Rollout Forecasts
2001
----
HSD [CHART] HSD
@9%; Telephony
Digital VOD
@21% Digital
Data from Allied Business Intelligence and Kagan
[LOGO] C-COR.net
The One Solution for Network Integrity
Bar graph shows projected growth over ten year period (1996-2006) of services
rolled out on US HFC networks, including high speed data, telephony, video on
demand and digital tv.
1996 2006
---- ----
HSD 0 subs HSD 12415 subs
--- -------
Telephony 5 subs Telephony 5579 subs
--- ------
VOD 0 subs VOD 23939 subs
--- -------
Digital 0 subs Digital 33156 subs
--- -------
Slide also shows that in 2001, HSD penetration is at 9% and Digital
penetration is at 21%.
"We're taking on network integrity."
BMS Market Chart
[CHART]
[LOGO] C-COR.net
The One Solution for Network Integrity
Bar chart depicts market opportunity for Broadband Management Services
Worldwide. Of a billion dollar market in the US, less than 4% of that market has
been tapped. Of a half billion dollar market in Europe, only 2 % of that market
has been tapped and of a 200,000 dollar market in Asia, only 1 % of that market
has been tapped.
"We're taking on network integrity."
Financial Reporting Structure
Business Units FAS 131 Reporting Segments
-------------- --------------------------
-------------------------- --------------------------
Broadband Communications Telecommunications
Products Equipment
-------------------------- --------------------------
--------------------------
Broadband Network
Services
-------------------------- --------------------------
Broadband Management
-------------------------- Services
Broadband Management --------------------------
Solutions
--------------------------
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Q1 Highlights - Income Statement
. Product sales grew 44% over previous quarter
. ADC acquisition closed August 4
. Gross margin of 29% reflects changes in product mix and
manufacturing cost structure
. Volume adequate to sustain R&D investment at a profit
. Technical services sales stabilized
. Overhead cost structure to support higher volume
. Opportunity-rich environment suggests potential for growth in CY 02
. Solutions division in investment mode
. Investment approximately equal to C-COR's pre-tax loss in quarter
. Investment should peak in second quarter
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Q1 Highlights - Balance Sheet
. Current Ratio
. 3.4:1 including cash
. 2.4:1 without cash
. Cash and marketable securities - $58.4 M
. Working capital replenished
. CapEx and depreciation balanced
. Accrued liabilities
. Pro forma earnings/loss - cash generation/use
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Financial Objectives
. Gross Margin expansion
. Optical products mix
. Technical services overhead
. Software fixed costs
. Operating efficiencies
. ERP - automation
. Acquisition integration
. Historical operating margins and beyond
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Financial Summary
. Manufacturing infrastructure adjusted to current sales volume - gross margins
back to historical levels
. Solid balance sheet - manageable cash consumption related to investment in
future
. Business model in place for earnings rebound based on market conditions
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Where Is Technology Going?
-------------------------
Brief Look At 4 Aspects:
------------------------
. Marketplace Trends
. Impact On Cable Operators
. Architecture Migration
. Resultant C-COR Opportunities
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Marketplace Trends
------------------
. Continued growth rate of internet, and growth of high speed access (CM & DSL)
. DBS growth & competitive pressure
. POTS 2nd line growth
. PC migration to living space
. In-home networking
. Converging entertainment & interactivity (gaming, streaming, "always on" web,
etc)
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Impact On Cable Operators
MSO Initiatives (Current & Planning)
-----------------------------------
. Continue Cable Modem Push
. Continue Digital Video Push
. VOD
. Stop DBS bleeding
. Incremental revenue (recapture video rental $)
. Telephony Services
. Business voice & data
. Residential voice services - multiple lines, value-add
. Interactive TV
. WWW and e-mail on TV; Enhanced information
. Competitive value-add; New revenue streams
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Impact On Cable Operators
Issues
------
. All These = Network Demands:
. Downstream - from Broadcast to Dedicated traffic
. Upstream - more demand on fragile, limited bandwidth
. Scalability - Success is its own enemy
. Service Availability - Network Reliability
. Beyond-entertainment services (including lifeline)
. Competitive pressure
. Shortage Of Qualified Technical Workforce
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Architecture Migration
Going Forward - Network Changes
-------------------------------
. Individual Traffic vs "Broadcast"
. Frequency Re-Use vs Additional Bandwidth:
. Remove Tx Splitting & Rx combining
. WDM and DWDM
. Node Splitting/Segmentation
. Fiber Deeper
. Requires Additional Fiber Transmitters & Return Receivers, and
Upgrade/Add Nodes
. Digital Return
. Bandwidth Efficiency, Reach, Signal Reliability
. Business High Speed Data Overlay
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Traditional Bus Architecture
[Graphic]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Segmented Star-Bus Architecture
[Graphic]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Resultant C-COR Opportunities
-----------------------------
Broadband Communications Products
---------------------------------
. Segmenting Network/Traffic
. Additional Transmitters & Return Rx
. Segmentable Nodes & "Lid Upgrades"
. Digital Return
. Business HSD Overlay Solutions (now & RPR)
. Further Domestic Upgrades
. Stay Ahead Of Service Launches
. Secondary Markets
. International Network Deployments
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Resultant C-COR Opportunities
-----------------------------
. Network Management
. Monitoring, Fault Correlation, Proactive Maintenance
. Systems Integration - Single Database & User Interface
. Workforce Management
. Operational Efficiencies - Direct ROI
. Improved Customer Service
. Technical Services
. Network Deployment & Service Rollouts
. Ongoing Operations
. New Skills Requirements
. Reputation For Technical Proficiency
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Network Deployment
------------------
Digital
Interconnect
[PICTURES]
Line Customer
Headend Hub Node Amplifier Extender Premises
> Forward > Equipment
Transmitters
> Technical Services
> Return Receivers
> EDFAs C-COR Product/Service
Areas
> Technical Services
Not C-COR Products
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
MSO Spending Migration
-----------------------
Resultant Needs, Products & Services
------------------------------------
> COR-Convergence
> Workforce Management
> Outsourced Skilled Labor
> Servers, CMTS, Switches, etc. Digital Set-tops, Cable Modems, NIDs
> Network Segmentation
> Technical Services
MSOs Focus / Spending
---------------------
-- Ongoing Operations:
------------------
>Network Management
>Operational Efficiencies
>Network Maintenance
Services Rollout
----------------
[Graphic]
-- Network Deployment
[Graphic]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
. We are focused on where cable operators' businesses, networks, and needs are
going.
. We have, and are continuing to develop, the products and services that they
will need.
. We have put the structure and the people in place to successfully deliver
what customers need today and tomorrow.
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
C-COR Forward Strategy
. Leverage total solutions for infrastructure integrity
. Products - Solid Business Foundation
- Optics growth
- International rebuild
. Services - Steady Revenues and Expansion
- Supports all phases
- Can regionally support various markets
. Operational Management - Growth Business
- Positioned for next phase of spending
- Proven products and capabilities
- Very small installed base
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
2002 Success Milestones
. Revenues Mix
. International Products Business
. Service Margins
. BMS Awards
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
C-COR Analyst Day
09:00-10:00 Welcome
Corporate Overview
Financial Summary
Network Requirement Trends
10:00-12:30 BCP Overview
BNS Overview Concurrent
BMS Overview
12:30-13:00 LUNCH
13:00-14:30 Tour
14:30-15:00 Wrap-Up/Questions
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Tour Highlights
. All divisions covered
- Just a sample in corporate headquarters
. Includes AT & T's headend
- 50,000 homes passed
- 650 plant miles
- 6,000 modem customers
- Varied node size
- Adelphia has purchased
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Tour Highlights (cont'd)
. Product Development
- Component R&D
- Engineering Lab
- Technology Center
- Halt Quality Testing
- Manufacturing Floor
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Tour Highlights (cont'd)
. Network Services
- Outside Plant Services
- Network Design
- Training Facility
. Management Solutions
- Engineering Lab
- Integrated Demo
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Broadband Communications Products
We provide digital and analog
transport system solutions for
advanced broadband network operators
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
History
. A 50 year history of Technology, Innovation,
Quality and Service.
- Established 1953
- Silicon Valley Communications Inc (Sept. `99)
- ADC'S Broadband Communications Division
(Aug. `01)
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Division Overview
. Approximately 1200
employees
. Core competencies in digital, [PICTURE]
opto-electronic & RF design
. Global reach [PICTURE]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Division Overview
. Global HQ: Meriden, CT
. Three Design [PICTURE]
Competency Centers
. Four Strategic
Manufacturing Centers
State College Klagenfurt Buenos Aires Tijuana
[PICTURE] [PICTURE] [PICTURE] [PICTURE]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Broadband Communications Products
John Caezza
President
Joe Zavacky
Finance
(acting)
John Hastings Vice President N.A. Sales Ops.
. Domestic Sales
. Manage Sales Eng. Team
. Business fcst.
. Account coordination w/ Corp. AM's
. Cust. Service
Bob Oakley Vice President Product Mgmt.
. Product Mgmt.
. Product Mkt.
. Business partner mgmt.
. Technical Publications
Peter Wolff Vice President Product Dev.
. Development project mgmt.
. Product architecture
. Systems Eng.
. Product Dev.
. Documentation
Bill Milliron Vice President Global Mfg.
. Production Management & Supervision
. Planning and Tactical Purch.
. Mfg. & Test Eng.
. Facilities
. Product and Process QA
Mario Frattaroli Vice President Global Ops.
. MPS & forecast analysis
. Master Scheduling & Logistics
. Commodity Mgmt./ Inventory Mgmt.
. OEM/Outsourcing/ Partnering
. Supplier Dev. & Assurance
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Our Business - Today
. Broadband Transport and Access Systems for the Cable MSO - domestic &
international
- Video transport is our expertise
- Digital Video transport systems
- HFC transport/video access systems
. Video Transport (Tariff) Systems for ILEC, CLEC, and Commercial Broadcast
applications (CBS, CNN, etc.)
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Our Business is Fundamentally
Broadband Transport
. Our strength and expertise is video
transport
. DV products for broadcast quality,
uncompressed video transport
. HFC infrastructure systems optimized for
video and broadband services delivery
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Network Overview
[Generic depiction of a network]
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Key BCP Customers
[LOGO] Adelphia [LOGO] Mediacom
[LOGO] eKabel
[LOGO] AT&T [LOGO] Qwest
----------------------------------
AOL Time Warner
----------------------------------
[LOGO] BEZEQ
[LOGO] Charter [LOGO] CABLEVISION
COMMUNICATIONS
[LOGO] UPC
[LOGO] COX [LOGO] ROGERS(TM)
COMMUNICATIONS
[LOGO] COMCAST(R) [LOGO] ntl: [Picture]
CORPORATION
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Digital Video Transport
[Graphic]
Applications II Benefits II
. HFC Backbone, HE Consolidation . ~$500M Installed base
. Local and network broadcasters . Most powerful and cost-effective
. Post-production houses . Reliable, pristine signal quality
. Distance learning . Flexible, modular
. Video conferencing . Multiformat - uncompressed and
compressed video and audio
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
LumaCor Headend/Hub Optics
[Graphic] [Graphic] [Graphic]
3 RU and 1 RU 1550 nm QAM High-powered
Universal Chassis Transmitters EDFAs
Applications II Benefits II
. HE to hub or node . Superior performance - 1330
. Supports VOD, HSD, interactive and 1510 nm
TV, cable telephony . Modular, compact
. Medium haul transport and . Maximum reliability, minimizes
distribution service
. Flexible, scalable
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
NaviCOR & FlexNet Nodes and Amps
[Graphic] [Graphic] [Graphic]
Quadrant II Digital Return FlexNet Trunks
Segmentable Node Systems And Bridgers
Applications II Benefits II
. Advanced VVD networks two-way . Backed by decades of industry
analog and digital know-how
. Deep node or bridger penetration . Reliable, scalable, cost-effective
. Passive optical networks . Extended bandwidth
. Nodes upgrade from amps . High performance, TL Technology
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
International Products
I-Flex Trunks, Bridgers,
Lines Extenders FOX Distribution Comtec Distribution
and I-FLEX II Modular Nodes Equipment Equipment
Applications II
. Global cabinet/pedestal mount systems
. Analog and digital multi-service HFC networks
. Fiber to the building, curb, and last amp or in
passive optical network
Benefits II
. Reliable, extended bandwidth
. Modular, easy to maintain
. Two-way
. Bridgers upgrade to nodes
. Cost-effective, improved system performance
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network integrity."
Looking Forward, The Market is Changing
. HFC networks are no longer simply broadcast networks for entertainment
content ( "Cable TV")
- High Speed Data (HSD)
- VOD and SVOD
- Telephony
. The North American MSO's have shifted their priorities to roll-out of new
services.
- HSD and VOD services are the current focus
. The International markets are accelerating their adoption of new
technologies.
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network intergrity."
Taking Advantage of the Changing Market
. We provide our customers with the fastest time to profit for new services and
revenue streams
- Our systems need to provide the lowest cost per unit of bandwidth
delivered
- Our systems need to be open, easy to install, use, and integrate into
existing architectures and operational systems
- Our systems need to provide fast time to profit through optimization
with and reuse of the existing HFC infrastructure
[LOGO] C-COR.net
The One Solution for Network Integrity
"We're taking on network intergrity."
Key Success Factors
. High value, applications focused offering
. IP interconnection of access applications
. Scalable - architecture, and technology: Gigabit Ethernet, 10Gig-E, 40Gig-E
and beyond
. Standards based to ensure low cost, high value
. Integrated management systems, including provisioning, billing, and
performance
. Never forget our roots - Video Transport begets Video Content - we must
leverage our knowledge of Broadband Video Transport!
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The One Solution for Network Integrity
"We're taking on network intergrity."
Small & Medium Enterprise (SME) A New Opportunity
. Currently less than 10% of all SME are on line
- 11% of online SME are BB, mostly via xDSL
. 2005, 50% will have BB access via xDSL and HFC (or new platforms)
. Of 7.8M SME, 7.1M have less than 9 employees on line, and spend about $440/m
on telephony and data access
. Broadband penetration of SMEs expected to grow at ~ 40% CAGR over next five
years.
- xDSL, fixed wireless or HFC. Source: Company reports, McKinsey and JPMS
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Key for Our Future
Product Availability
. High Density Platform . Q1 2002
. Digital Summing Transceiver . Q1 2002
. Gigabit Ethernet overlay . Q1 2002
. DV SONET/SDH Interface . Q4 2002
. Fiber to the Business (RPR) . H2 2003
. Fiber to the Home (RPR) . H1 2004
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Broadband Communications' Future
. HSD and VOD Applications will provide near term opportunities to maintain and
grow current market position.
. International Markets provide yet untapped potential for existing and near
term product offerings.
. Telco Markets provide additional opportunity for existing and future product
offerings.
. SME Product Offering provides C-COR access to $1billion market
. Gigabit Ethernet Product provides a natural bridge to SME
. RPR Transport Product provides the future system solutions for today's MSO,
Telco and International network provider.
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The One Solution for Network Integrity
"We're taking on network intergrity."
The Knowledge Source for Network Integrity...
...The Product Source for Network Performance
[Graphic] [Graphic] [Graphic] [Graphic]
"Converging on Opportunity"
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The One Solution for Network Integrity
"We're taking on network integrity."
Broadband Management Solutions
Ensuring the integrity of multi-services delivery to the customer premise
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The One Solution for Network Integrity
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Broadband Management Solutions
. "Proactive" solution paradigm for BSP's
- COR-Convergence: intelligent network management
- MobileForce: mobile workforce automation
. Fully integrated OSS solution suite from a single, trusted supplier
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BMS Facts
. Full-time staff of 95 people
- Engineering-centric team
. Experienced leadership & team
- Broadband domain, OSS background, software development, integration
services, business process re-engineering
. Headquarters in Pleasanton, CA [PICTURE]
- Engineering facilities:
. State College
. Atlanta
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The One Solution for Network Integrity
"We're taking on network integrity."
BMS Organization
[Graphic]
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The One Solution for Network Integrity
"We're taking on network integrity."
Our Customers' Challenges
. Transition to highly competitive service space
. Transition from network upgrade to customer
deployment and multi-service operation
. Transition to mission-critical service offerings
. Integration and operation of multi-vendor
systems & network assets across properties
. Continued margin performance pressure
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Our Customers' Challenges
Network INMS Back-office
Manual
Creation of
Network Data
Customer
Premise
Equipment
Network CAD
System
Intelligent
Network Network
Elements Management
& SNMP System
Customer
Care
(Billing
System)
Head-end
System
Interface
Trouble
Ticketing
System
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"We're taking on network intergrity."
One Window to Your Network
[PICTURE]
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Our Solution Strategy
. Leverage C-COR.net's deep HFC technology
know-how, and industry position
- BCP & BNS
. Open software solution
- Support for existing infrastructure and systems
- Adapt to a dynamic technology environment
. Utilize industry recognized OTS software tools
to accelerate time-to-market of our products
- Best-of-breed software products
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Our Solution Strategy
. Rapid customer delivery model
- Ready-integrated (XML bus), highly configurable
products
. Customer enterprise deployment or ASP model
- Fully web enabled solutions
- Highly scalable solutions
. Utilize proven software development & customer
delivery methodologies
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The One Solution for Network Integrity
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Key BMS Customers
-------------------------------
[LOGO] AOL Time Warner
Charter -------------------------------
COMMUNICATIONS
[LOGO] INSIGHT
--------------
COMMUNICATIONS
[LOGO] WideOpenWest
Bringing Broadband Home
[LOGO] COGECO
[LOGO] COMCAST(R) -------------
CORPORATION
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Opportunity for Our Customers
. Aggressively compete for new services (RGU's)
- Telephony
- High speed data
- Interactive entertainment services
. Superior service delivery to customers
- Support SLA & QoS customer commitments
- Reduce customer acquisition & retention costs
- Reduce customer churn
- Operational efficiency
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The One Solution for Network Integrity
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OSS Solutions
for a
Connected World
"in a flash"
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BMS Future
. OTS integration with new BSP enterprise
systems, network infrastructure & CPE
. Continued emphasis on BMS product
functionality supporting SLA & QoS
requirements
. Reduce our product deployment costs to
improve overall BMS solution margins
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Opportunity for Our Customers
. Real-time decision support
- Fully integrated with customer information & the BSP enterprise
. Create business intelligence
- Service usage modeling (customer)
- Service response performance
- Network performance
- Vendor (equipment) performance
- ISP performance
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The one solution for Network Integrity
"We're taking on network integrity."
Broadband Network Services
We provide hands-on technical
services for advanced broadband
network operators
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History
. The current BNS structure came about as a result of the
combination of acquisitions and existing services components
already existing within C-COR.
- ACSI (12/99), Worldbridge Broadband Services (2/00), Valley
Communications (7/01) & Aerotec (7/01).
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BNS Operating Structure
. BNS operates under four separate yet complementary business
units, currently employing in excess of 400 skilled
technicians.
- Network Engineering & Design Services
- Network Integration Services
- Outside Plant Services
- Outsourced Operational Services
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Corporate Office
Paul E. Janson
President / CEO
Outside Plant Ric Roberts Larry Warren Jim Romese Pat Kelly
Regional VP's VP CTO / Sales VP VP
Network Eng. & Design Outsourced Operational Network Integration
Services
Robert Sullins Eric Johnson Dana Kring Scott Ishler
VP VP VP VP
South West Mid west East
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Key BNS Customers
[LOGO] Adelphia [LOGO] TIME WARNER Telecom
-------------------------
AOL Time Warner [LOGO] INSIGHT
[LOGO] AT&T ------------------------- COMMUNICATIONS
[LOGO] Level(3) [LOGO] Qwest [LOGO] ARRIS
COMMUNICATIONS
[LOGO] Charter [LOGO] CABLEVISION [LOGO] IBM
COMMUNICATIONS
[LOGO] Altrio
ONE CONNECTION INFINITE POSSIBILITIES
[LOGO] COX [LOGO] Mediacom
COMMUNICATIONS [LOGO] NORTEL
NETWORKS
[LOGO] ROGERS(TM)
[LOGO] Cisco Systems
[LOGO] COMCAST(R) [LOGO] Cable Zocalo Empowering the
CORPORATION Internet Generation
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Technical Services
Network Engineering and Design
. RF Design [Picture]
. Walkout & Field Engineering
. Fiber Design/Drafting
. Fiber Documentation
. Project Management
. Engineering Consultation
. Strand Digitizing (AutoCAD & MicroStation)
. Data Archiving
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Network Engineering & Design
- Client Requirements: Currently there exists approximately 1.5 million
CATV plant miles in the North American cable universe. The shear number
of design changes, digitizing, new build is large. Factor in the few
remaining O/B's and the telephony market and the opportunity is
significant.
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Technical Services
Network Integration
. HE & CO Space Design
. Rack & Stack
. CMTS, DWDM & SONET Installations
. Fiber & Traditional HE Installations
. Certification / Documentation
. Training
. Engineering Design
. QA Project Management
. LAN, WAN & VPN Installations
. Certifications: IBM, Lucent, Nortel, Cisco, Barco, Antec
. Cornerstone, ADC, COM21, Fujitsu, Qwest
[Graphic]
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Technical Services
Network Integration-Continued
. Wireless Solution: All phases of fixed and mobile design, engineering &
installation
. CO DSL Installations
. Data Center & NOC Solutions
[PICTURE]
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NETWORK INTEGRATION
- Client Requirements: The vast client needs in this space exist primarily
outside the CATV world. In this space we work for clients such as IBM,
Nortel, L3, Cisco & Qwest.
- Outsourcing: The telecommunications space continues to shed jobs at a rapid
pace. However the network operational problems still exist. We believe we
are well positioned to grow the outsourcing aspect of this business.
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Technical Services
Outside Plant
. Sweep and Balance
. Node Certification
. Coax & Fiber Placing
. Coax & Fiber Splicing
. Ingress Mitigation [PICTURE]
. POP Certification
. Node Hardening / PM Program
. Broadband Technicians
. Project Management
. Fixed Wireless Construction
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Outside Plant Services
- Client Requirements: Through 2003 we will continue to see strong
rebuild activity from Charter, Adelphia, AT&T as well as second tier
cable systems.
- Capital / Expense Shift: During this time our business unit will
slowly transition our technical expertise over to the expense side
of the clients' budget, using our plant conditioning / PM program.
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Technical Services
Outsourced Operational Services
. Residential /Commercial Installation
. Voice, Analog / Digital Video & Data
. Audit [PICTURE]
. Drop Swap
. FSO
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Outsourced Operational Services
- Client Requirements: There exists today approximately 10,000 cable
systems with 65 million customers. With a churn number of 30% that
equates to 20 million positive / negative jobs per year. Add in new
connects for additional services, drop swaps & audits and the
opportunity is significant. BNS operates at a higher technical level
than our competitors and we believe that this differentiating factor
will allow us to continually grow this business.
- Incremental Revenue: In addition to the installation side, our
company dynamics allow us to add IR at our project locations
(Knoxville).
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Future Opportunities
. Network Design: Break into telephony and utility power design.
. Network Integration: Continue to shift BNS into the greater telecom
world. Broadly defined, the telecommunications market spends $200
billion per year to install and provision end user clients.
. Outside Plant: Convince our existing clients to outsource certain
aspects of proactive preventative maintenance to BNS.
. OOS: Grow at a 30% rate and improve margins. This would mean adding
two / three new locations per year.
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