[WSTL PR RELATIVE TO AMTX] Jim: thanks for your post. I didn't mean to imply that this week's action in WSTL was purely due to PR, but you would have to admit their touting of the company's involvement in the MCI Iowa trials didn't do their stock price any harm.
There have been numerous complaints on this thread about the lack of recognition for Amati's products in their trials, etc. with major firms such as NEC, MOT (who is reallly dropping the ball in their CG program), MCI, etc. I don't know if those omissions are contractual or just a lack of competence on the part of Amati.
It seems that there is a certain air of superiority in the management, i.e. they don't feel the need to participate in the knock-down drag-out commercial world, with such marketing techniques. It is true they have some basic patents, which have been not tested in court yet against competitors' products (when they become commercially available). I don't know if those patents have been validated yet by the international group in the Hague. There are very few patents that can't be circumvented in some way.
Amati has one of the most admired and famous people in the world of communications as their technical leader, who is now probably richer than he ever thought he would be in the academic world. Maybe he, as well as the others on the top management staff at Amati are so well set finacially, that a certain complacency has arisen in their every day activities. Hell, if I had a few million, I wouldn't still be working my tail off.
They will no doubt need a secondary offering, or at least an investment of some larger firm (Cisco??), sometime this year. Their cash flow will not support the kind of R&D, manufacturing and staff upgrades needed to really compete, hardware wise, in this market. The $15 million or so they got from Soros, in a most confusing transaction, is peanuts compared to what they will need. The stock is going to get seriously diluted. It is obvious to get the most bang out of the secondary, they need to get their public act in order. My hope is they will recognize the value of good marketing soon, and if they do not have that capability in house, I sincerely hope they will seek from an outside firm. |
