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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: rrufff who wrote (12795)	3/24/2005 2:18:01 PM
From: Rob S.	Read Replies (1) of 12823

I think that there were some basic miscalculations that started back during the Internet bubble but were not faced up to until being forced by the financial situation. SRT had a French business unit with it's French labor unions to deal with as well. It is tough enough having to get a corporate culture to accept that a radical down turn was taking place and changes that are deeper than transitional. SRT had the volume of business that should have created volume efficiencies that led to sales and profit gains. But you can't take the business climate for granted and have to be on top of technology and market shifts. You could analyse Proxim, WiLAN, Hybrid Networks, SRT and other companies that somehow lost what looked like a big advantage over their competitors and still see many things that they did right: Netro acquired Angel from AWE - a move that should have helped turn the company around but then they agreed to be acquired by SRT to leverage SRT's sales but they failed to recognize the structural problems that led to continued losses. The sad part is that the trends went on and on quarter after quarter despite announcements by management that the latest restructuring would finally fix things. What should have happened, and some of us advocated to Netro and then to SRT was a drastic cutting of the expense structure and concentration on OFDM/WiMAX based product developments (while existing product sales were cash-cowed or dropped). If more drastic measures had been made three years ago, then the company would still have plenty of cash and new WiMAX platforms to pursue business. That would have meant cutting 1/3-1/2 of employees and a decline in sales, which happened regardless but for the wrong reasons and out of the control of the company. It's easy to say what they should have done. I was saying it years ago: I did some consulting for a major investor who had filed a lawsuit against Netro. In some ways, Netro and then SRT tried to continue with a story that sounded nice to investors instead of owning up to reality. It would have been much better for investors if they had swallowed the bitter pill early on.

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