My favorite part of the 10K was the "NOTE 4 ACQUISITIONS" section. In particular:
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In February 1999, the Company entered into an agreement, subject to certain conditions, to acquire Apollo Telecom, Inc. ("Apollo"). Apollo subsequently was unable to meet the stipulated conditions and the Company withdrew its offer in April 1999. During the negotiations and in connection with the proposed acquisition, the Company advanced funds to Apollo in part secured by a Class II Telecommunications License to originate and terminate traffic in Tokyo, Japan. The total funding advanced to Apollo as at March 31, 1999 was $1.1 million. In April 1999, subsequent to the withdrawal of the Company's acquisition offer, Apollo filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The Company subsequently obtained the Japanese license which has an estimated market value of $220,000.
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CYOE has a funny habit of advancing cash to companies just before they go bust.
Now here's the really funny part - on July 8 they announced that they had "obtained" a Japanese Class ll Carrier License - but they didn't say how!
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Coyote Network Systems Expands International Presence Obtains Japanese Class ll Carrier License & Point of Presence
WESTLAKE VILLAGE, Calif., July 8 /PRNewswire/ -- Coyote Network Systems, Inc. (Nasdaq: CYOE - news) today announced that it has expanded its international presence by obtaining a Japanese Class ll carrier license and point of presence (POP), enabling the Company's carrier subsidiaries to originate and terminate traffic in that country. The Company is also in the process of arranging interconnect agreements with several ''in country'' as well as other international carriers.
''As part of our corporate strategy, we are targeting focused telecom market segments, such as international long distance to and through strategic markets like Japan,'' said Daniel W. Latham, president and chief operating officer, Coyote Network Systems. ''The Japanese license and POP should result in lower costs and greater efficiencies for our carrier subsidiaries, INET and AGT and their customers.''
INET Interactive Network System markets international long distance services, primarily to Japanese and French speaking people in the U.S. American Gateway Telecom provides wholesale international long distance services.
A fundamental component of Coyote's strategy for growth is to provide a total solution, i.e., switching equipment, international long distance and network services, primarily to entrepreneurial carriers. The Company is targeting specific market segments: telecom switching, international long distance and network services that include network design and operations services, facilities management, switch provisioning, billing administration, access to financing and customer support services. |
