Ed, what concerns me the most is: <<Densmore further stated, ''We have experienced lower than anticipated orders from existing customers as well as a slower than anticipated rate of orders from new customers, in particular Virtual Wire customers, due to delays experienced by certain customers in their own product designs.'>>
Besides, the Dow Jones article from earlier in the afternoon (10/31) mentioned pricing pressure from other competitors and problems with the HX/RX transmitter/receivers. I've used those chips and they work very well on a quiet environment, but their selectivity when you have noise sources nearby (i.e, computers, monitors, etc.) is quite poor. I wonder if that's the reason some companies are refraining from buying the product at this time.
The product line is good and has a very good potential. The use of built-in SAW filters makes their transmitters and receivers very affordable. However, unless the selectivity can be improved so they can operate under most normal conditions, it will be hard so increase sales to OEMs.
IMO, the stock will rebound as the company enhances its product line. For the time being, this quarter won't be as good as expected but I'm confident things will get better.
Regards,
Pedro |
