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To: Pink Minion who wrote (1118)4/2/2002 9:09:36 AM
From: Sector Investor  Read Replies (1) | Respond to of 7022
<<When are they gonna stop burning cash?>>

Whenever they feel like it.

All their ongoing businesses are cashflow positive. The red ink is artificially induced to accelerate R&D for their two new initiatives.

If you bothered to do your DD you would know they funded their new initiatives through external consultants and university researchers, and have projected their expenses to decline and return to historic levels this year.

According to this guidance yesterday and guidance given in the Q4 CC, Q2 looks to be anywhere from break even to a few cents positive earnings.

To: Pink Minion who wrote (1118)4/2/2002 9:14:31 AM
From: robert b furman  Read Replies (1) | Respond to of 7022
Hi Semi,

My bet this pushout of a large military order (which carries the best margins)is a strategic ploy to be in the black 1 quarter earlier than past guidance which referenced the second half.

Nice to know satellite sales are so strong they can pick up the slack on a pushout and not hurt past guidance.

Very few companies have had growing demand for their products throughout this slow down.Sales growth has been impressive.

R&D has delayed the profitability of this firm for the last 4-5 quarters.Running in the black, with their annualized sales rates,will no doubt create a multiple expansion.

Setting up to become profitable by a quarter ,earlier than previous guidance, is THE SINGLE BEST IDEA in enhancing stock holder value.<VBG>


P.S. Sector - how big was the reduction in the Asian Nav Trac Order that was being delivered this first Half?? I'm running off memory here (always dangerous) but do I recall your estimate of 1.9 Million?? guessing

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