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Toufiq Bousaid

๐Ÿ‘ค Speaker
46 total appearances

Appearances Over Time

Podcast Appearances

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

Well, so for the moment, I mean, the disruption that we have seen have been rather minimal.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So we have not noticed major disruption as far as our supply chain and so forth.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

We did see some tactical adjustment of some of the logistic costs.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

The shipping companies have indeed increased some of the pricing.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

But as far as our operation is concerned, we didn't see any disruption for the time being.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So we will need to see long term if the events and the tension are extending for too long, how it will impact the business.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

But for the moment, I have to say that the disruption is rather minimal.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

Yeah.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So we have two important milestones.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

The first one is the gross margin positive, and this is expected to happen in the midterm, and you should read midterm for...

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

basically the next three years and the free cash flow positive expected by the late decade.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So this is the plan that we have.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

This is the guidance that we have provided yesterday during our investor day.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So several levers that we will be activating to get there.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

First of all, I mean, we are in industry where scale is important.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So scale coming out of mid-size is one of the key catalysts to allow us to go to break even margin and cash flow positive.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So that's the first lever.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

The second one is the margin improvement and the additional revenue streams that we will be adding to our top line.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

So the margin is expected to improve on the back again of the scale, the various improvements that we're doing, not only in terms of constraining the bill of material or constraining some of the cost lines that we have in the company.

Bloomberg Tech
Meta Cable Expansion Stalled by Iran Conflict

It's also about simplifying what we will be bringing to the market going forward.

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