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To: Mickey Szilagyi who wrote (291)12/2/1998 10:10:00 PM
From: David R   of 333
 
I am certain that you are misreading the Q3 results.

During the third quarter of fiscal 1998, Centigram finalized the sale of the company's CPE business unit, recorded estimated expenses for its intellectual property dispute with Lucent Corporation and recorded a write-off of in-process R&D related to the purchase of The Telephone Connection, Inc.

They took a non-recurring charge of $13.4M for "in-process R&D write-off and estimated intellectual property dispute costs". I can not imagine that they took more than a few $M in R&D costs for a company that they bought for $12M. I think that they knew in Q3 how much the Lucent deal was going to cost. I do not expect that they will have a large chare (if any) this Q.

With regards to the balance sheet, the statement shows ~$52.2M in cash, and a stockholders equity of $64M (~$9/Share).

As far as Y2K, their newest product is Y2K certified. They will have a Y2K fix for 6.0 and 5.04 by end of year. All others (older than 5.04) will have to upgrade. THis is a reasonable policy. But I think that they were a little late delivering Y2K. Should have been inplace by Jan 1, 1998.

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To: David R who wrote (292)12/3/1998 8:04:00 AM
From: Mickey Szilagyi   of 333
 
Thanks. So we hold our breath for the latest results. MJS

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To: Mickey Szilagyi who wrote (293)12/3/1998 12:42:00 PM
From: David R   of 333
 
I expect that we will hear the news today or tomorrow. I am hoping for good news to push CGRM back into double digits.

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To: David R who wrote (294)12/7/1998 6:19:00 PM
From: David R   of 333
 
CGRM beats estimates for Q4 by .08 (-.2 vs -.28 expected), and Year (-1.77 vs 2.18 expected).

go2net.newsalert.com 

As I suggested, the Lucent settlement did not affect the results. CGRM did a $20M Q and apparently needs about $22M to break even. Hopefully, they will continue the trend and next Q will at least break even. Also of note is the revision of Q3 results the company's third quarter loss has been reduced from $3.7 million to $0.3 million.

One can only hope that his news is sufficient to push CGRM back into double digits.

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To: David R who wrote (295)12/11/1998 8:39:00 PM
From: Mickey Szilagyi   of 333
 
CGRM's program compatible with Cisco's platform standards.

go2net.newsalert.com 

David, what do you think, is this significant? Respect and appreciate your opinion. MJS

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To: Mickey Szilagyi who wrote (296)12/13/1998 10:24:00 PM
From: David R   of 333
 
I wish it meant that Cisco was buying CGRM :-). I think that it should be seen as good news because it makes CGRM a player in the IP market. While that may not translate into a lot of dollars (maybe it will), it certainly makes CGRM look "leading edge" for a change. I also am a firm believer in the capabilities of Series 6 as a platform. Imagine that, CGRM with a fine IP services platform. Who knows, this could light a serious fire under CGRM (having two CISCO directors on CGRM's board could certainly give rise to rumors).

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To: David R who wrote (297)1/7/1999 11:38:00 AM
From: Bargain Hunter   of 333
 
Announcement from Cisco relating to home networking: biz.yahoo.com  Anyone know whether/how this relates to CGRM?

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To: Bargain Hunter who wrote (298)1/7/1999 4:29:00 PM
From: David R   of 333
 
Well, if they are going to provide voice/fax messaging service, whose server would they use? Hint: what major messaging provider has close links with Cisco, and also has recently issued a joint press release announcing system compatibility?.

CISCO could buy CGRM for just a few shares of stock (don't we wish). Perhaps even better would be an announcement that CGRM would provide the messaging services for this killer home network. Such news could easily send CGRM into the 30's (remember there are only 6.5M outstanding shares of CGRM stock).

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To: David R who wrote (299)1/8/1999 1:31:00 PM
From: Bargain Hunter   of 333
 
Well, if they are going to provide voice/fax messaging service, whose server would they use? Hint: what major messaging provider has close links with Cisco, and also has recently issued a joint press release announcing system compatibility?

But why does a digital network need a special phone/fax server? Bits are just bits. That's the part I don't understand about this whole Cisco connectivity announcement. Anyone doing end-to-end voice or FAX over a Cisco network would not need the CGRM box. But if there is some plan to provide dial-in capability for other people to access the network the old fashioned way, then there could be room for CGRM.

Does anyone have any specifics?

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To: Bargain Hunter who wrote (300)1/8/1999 4:54:00 PM
From: David R   of 333
 
This is not end-to-end phone. You get a high speed connection that will provide phone/video/fax/etc. However, most calls will come from the POTS network. I suspect that conventional phones will still be used, and a de-mux will split the phone service at the house, and connect into existing house phone wiring. This means that voicemail, etc. will still be relevant. CGRM also offers services that Cisco could use. For instance, if you are away from home, an (800) number could connect you to the network, and then you could make calls at a cheaper rate. CGRM's box would bridge the Cisco system to the SS7 network

Thus the same 800 number could give you remote access to voice/fax/email, and give you cheap LD calling. For the SP it is compelling because any time they complete a LD call within their network, then keep all of the money.


Just a dream. Just a dream.

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