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Technology Stocks : FORE Inc.

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To: Elmer Flugum who wrote (10246)	1/20/1999 8:31:00 PM
From: Bruce L	Read Replies (2) of 12559

The FORE thread seems to have been taken over by dilettantes: people with little or no interest or knowledge of our company - fundamentally or technically. (Examples: 'this stock is a good value at $9-10;' or 'I'll buy when it gets down to $15, or maybe 14.') That said, I can say from experience on other tech threads that it is almost always a contrary indicator when these types come out from their rocks. I'm also chagrined that none of our regulars posted any of the highlights of the CC - which IMHO was pretty darn positive. Year to date revenue increased 30% to 158.7 million from 122.1 million. ASX revenue for the Q exploded 150% sequentially, fueled by the introduction in October of the ASX 4000. Revenue from ESX (Berkeley) products "exceeded expectations" (whatever that means) despite the fact that ATM uplinks for these products had not yet been completed. The company won the US Gov't contract ( 7 year contract with most of the product being supplied in the first 2) in very competitive bidding. The negative: gross margins for the Q were only 53.4% as compared to the 55+% they would have been without the contract. Positives: the cache of having the world's largest enterprise customer and easy entree to other gov't and large enterprise business, including lucretive service contracts. ATM revenue growth (53% of total revenue) was counterbalanced to an extent by small declines in adapter card and general enterprise revenue. The revenue was derived 73% domestically versus only 72% the preceding Q. R&D and Sales & Marketing expenses increased year to year and sequentially by a substantial margin. This Q it broke ground on a new 150,000 sq. ft. facility in Pa. Going forward the company predicts continued top line growth as well as increased high dollar multi-year contracts. IMHO a positive report despite the fact that they "only" met earnings expectations; it is ridiculous to say that this company -given its momentum and products cannot exist as an independent company, although I agree it would make an appetizing acquisition at a price far higher than today's close. Bruce

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