21 1/4 on vol of 122K. ~70% Institutional. Per the 10Q, inventories are declining, net profit is up, sales from prior year are 14M to 20M.
On November 5, 1999, the Company's largest customer exercised a warrant and
purchased 307,692 shares of the Company's common stock at $13.00 per share. The
customer elected to pay the exercise price by canceling the outstanding $4.0
million balance on a related borrowing agreement. The customer retains the right
to purchase an additional 192,308 shares at $13.00 per share under the warrant
through May 5, 2002.
In
October 1999, the Company entered into a cross-licensing agreement with Lucent
under which the parties released each other from claims of past infringement and
granted each other a five-year license to use the respective patents. The
Company paid a one-time fee of $3 million for the release, license and related
rights.
The 10Q goes into royalties but this is a great collaboration vs. ugly lawsuit.
This number just jumps out at me.
Six month ending 9/99 EPS was 2.18
Six month ending 9/98 EPS was (0.50)
This is a huge jump!
This I don't understand:
The Company has been served with three class action lawsuits, one each in
Alabama, Indiana and Massachusetts state courts, related to the alleged
inability of the Company's Replay, Replay Plus and Repartee products released
prior to Repartee 7.44 to function properly with respect to the year 2000. The
plaintiffs in the suits seek to require the Company to remedy the alleged defect
in these products and also seek damages. The Company has filed its answers in
these suits. The Company believes that the claims stated in the cases are
without merit, that the cases are not appropriate for class action, and the
Company intends to defend itself vigorously.
Seems the lawsuit is premature.
Jack |
