NTN Communications, worth 185 million? Message Board

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Technology Stocks : NTN Communications, worth 185 million?

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To: June who wrote (2958)	4/19/2000 4:37:00 PM
From: Rich Genik	Read Replies (1) of 2985

Hi June, Well, I'm not worried that much about AMEX delisting NTN. They have a significant portion of costs associated with capital expenditures, purchasing systems and the like for lease by subscribers. This leads to significant and recurring D&A each quarter, as the equipment ages. Also, with the replacement of the entire network, we'll see a significant charge to zero out all assets based on the old network later this year. The rather important number is the EBITDA, which has been positive for NTN for at least a year (CQB is one major corp. that reports a similar number). A mojor problem is that capital expenditures drain cash, which they are not flush with at the moment. They have enough to get through this FY, but will need additional capital under the existing business plan. NFL always drives a hard bargain and doesn't renew on time. I won't start worrying until closer to QB1 season. The Miller v. NTN things was settled as expected and the suit dropped. No cash cost to NTN on this front. I was impressed with their 20,000 homes tuning in to paranoia so far. A couple of more weekends this month will show if this thing has legs. Buzztime is modeled to ramp up this year by only spending one the order of $10M. Compare with other comapnies that are trying to do similar things by spending $50M/year. What was UPRO net loss last year, $35M? Wall Street is clammoring for net companies to control ramp up costs, so I don't understand why NTN is getting tossed in with these guys that burn through $100M in 4 quarters without getting anywhere near showing any kind of positive numbers. There was a side by side comparison between NTN and UPRO over on Yahoo a week ago or so that was very telling on the different business strategies. Anyway, gotta get back to work... Cheers, Rich

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