Bolt, Beranek & Newman [BBN] Message Board

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Technology Stocks : Bolt, Beranek & Newman [BBN]

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To: Edward F. Horst Jr. who wrote (155)	3/19/1997 9:02:00 PM
From: golfer18	of 307

As an owner of BBN stock, here is some info from Alex Brown. 97 revenue expected to be $350mm. EBITDA positive by Q3 98, a disappointment since this is an extension by 2 to 3 quarters from previous forecasts. Most of their Planet revenue comes from a contract with AOL to build out their network,$500mm over next 3 years. Unfortunately, BBN gets lousy margins on this contract. It is half of this year's revenue for Planet division. The hope is the company is a survivor(very likely I think)and after the shake-out the company can raise prices and really make some money. This is a 2 to 3 year wait at least. Have patients. They are also the network supplier to AT&T for their business (not WorldNet)customers. I'm hoping AT&T will just buy them out ala UUnet. BBN is big on Web Hosting as well. Small but growing revenues from this business. High margins. BBN is a premier provider. They need more marketing expertise. They will also need more financing, too. 20 to 40 mm according to Alex Brown. I will buy some more if the tech stocks stablelize here. For someone initiating a position, it is a good long term play I believe.

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