[Answers to queries]
Dave --
I shared your concerns with RC and he said there was nothing the company was aware of that would make the stock go down. He noted that the DSL sector is weak and that even those who've had news haven't benefitted the way they would in a more favorable environment. As for bringing out press to reiterate the company's in good health, he said the board has a policy of not resorting to these types of press releases for basically two reasons: it sets a precedent and it could be construed as hype. Gibbons and Lucas are the strongest voices on the board and both have long histories in the technology sector and would rather err on the side of conservatism.
Regarding a defense in case of a hostile take-over attempt, the company has nothing in place, at least to his knowledge. If someone wanted the technology, they could pay for a license. It would be difficult to buy the company because of the nature of the intellectual property. Any aggressors would have to convince the key people to sell.
As it stands, the company is working hard to develop a thriving business. It's still early in the cycle. . . . trials will turn into a viable market when the chips are ready . . . telephone companies and large corporations are spending big money on this market. . . Amati is getting its products in shape, setting up alliances and partnerships, signing business committments. . . . Motorola and TI are working hard [on chips] . . it's not easy. . . they'll get their share [of market] when the chips are out.
I asked about press releases and he said the street would not reward any news that didn't have dollars attached. "We're trying to get that in place," he added. There are several in the works, "Some little, some big." As for coverage, once the company gets orders worth a couple million dollars, analysts can make meaningful projections. No dates were given for releases but I've heard we're not the only ones screaming for relief --- more than a few Amati employees are bleeding, too.
Regards,
Pat |
