Racom Systems (RCOM) Message Board

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Technology Stocks : Racom Systems (RCOM)

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To: Marty Lee who wrote (376)	11/18/1998 10:11:00 AM
From: Gutterball	Read Replies (2) of 468

With a $800,000 net loss, Racom has about $400,000 cash left. At the current burn rate, that's about 1 1/2 mo of black which means they should be running out of cash about now. We should be hearing soon about a financing package. I just hope they don't jump in bed with Cappello and company. Actually, I blame some of Racom's problems on Ramtron. Ramtron appears to be hold its FRAM licenses until after the conversion. Most of Racom's earnings $1.5 million came from the Hitachi license this year. The only thing that will save Racom this year is another FRAM license which they have promised for three quarters now. It is time to get off the pot. As I read the Profit & Loss Statement, $27,000 in Q3 revenues is nothing to crow about. Also suggests the Otis contract hasn't kicked in yet, which may provide the funds to carry Q4. In addition, cost of goods sold suggest they are paying their clients to take the stuff off their hands. Anyway, Racom has its work cut out for it. I'm willing to give them one more quarter to get their act together because they have a good management team in place and good contacts on the board. Something I can't say for Ramtron.

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