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Microcap & Penny Stocks : QSOUND LABS INC - - QSND - - ACER GROUP - - IBM

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To: Scott H. Davis who wrote (753)9/24/1999 9:40:00 AM
From: John Kessinger  Read Replies (1) of 857
 
Scott - You've waited this long so far and although you're frustrated (as we all are), I think it would be foolish to throw in the towel based on the upcoming Q3 results.

Some things to consider: (Be aware that some of this is info I've gleaned from the Yahoo board, but I'm confident that it's accurate.)

1) The VSpin deal will have an impact to Q3 earnings that may wipe out otherwise positive numbers. In the recent interview, Dave G said that the deal will be dilutive to earnings for 2 months, after which time VSpin will be operating at a breakeven or even positive standpoint.
2) QSound received their $300,000 development fee from Starkey this quarter. This payment may offset the VSpin effect noted above.
3) The US Cetera launch will begin in earnest in October. It is selling (2,000 sold) in Australia, New Zealand and the Netherlands. Starkey wants to have more audiologists trained and they want to iron out the their customization and production issues before they herald its release. I heard there will be a Business Week article.
4) iQ and IQfx Internet sales are running at 50,000 per month

My bottom line: Q3 will probably not show eye popping numbers, but Q4 and Y2K will reflect very good results. Kevin Skislock will soon be publishing a new detailed financial model that captures the VSpin effect.
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