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Technology Stocks : IWAV -- Interwave Communications International LTD
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To: Lucky888 who wrote (1)1/28/2000 7:27:00 PM
From: Lucky888  Read Replies (1) of 8
 
IWAV --

The more I read, the more interesting it gets:

WE DO NOT TYPICALLY HAVE A SALES BACKLOG AND THEREFORE MAY INCUR EXPENSES FOR
EXCESS INVENTORY OR BE UNABLE TO MEET CUSTOMER REQUIREMENTS

We do not have a significant backlog because our customers typically give us
firm purchase orders with short lead times before requested shipment. However,
our contract manufacturers require commitments from us so that they can allocate
capacity and be assured of having adequate components and supplies from third
parties. Failure by us to accurately estimate product demand could cause us to
incur expenses related to excess inventory or prohibit us from meeting customer
requirements.

OUR PRODUCTS ARE COMPLEX AND MAY HAVE ERRORS OR DEFECTS THAT ARE DETECTED ONLY
AFTER DEPLOYMENT IN COMPLEX NETWORKS, WHICH MAY HARM OUR BUSINESS

Our products are highly complex and are designed to be deployed in complex
networks. Although our products are tested during manufacturing and prior to
deployment, they can only be fully tested when deployed in networks with
high-call volume. Consequently, our customers may discover errors

9
after the products have been fully deployed. If we are unable to fix errors or
other problems that may be identified in full deployment, we could experience:

- costs associated with the remediation of any problems;

- loss of or delay in revenues;

- loss of customers;

- failure to achieve market acceptance and loss of market share;

- diversion of deployment resources;

- increased service and warranty costs;

- legal actions by our customers; and

- increased insurance costs.


L.
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