I also listened in on the conference call and jack pretty much said it all. Their strategy is to reduce R&D significantly, and bank on additional revenues from the release of Intelliserve, Keyview, and 64k integrated into their product line. They said Intelliserve would be out possibly this week, no later than end of month. Keyview due out in August. 64k product due end of CY at the earliest.
On the positive side, the reduction in R&D costs alone to less than 25% would make them profitable. Of course, they've yet to prove they can do this. I know - let's see if they can go a whole Q without a major acquisition! Don't expect to see increased revenues for the first couple of quarters, as the new products seek a market. However, if they can reduce R&D quickly, maybe they can become profitable sooner than it appears. One would think they would pull out all the stops to turn a profit for the 1Q, otherwise lose all credibility towards making .21 for the year. For this reason, I was glad they expensed all their acquisitions last year so they could have a fighting chance at profitability in 98.
I sold at $6 1/2 and planned to buy back in around $5 1/2. Now I'm not so sure about rushing back in!!!
Best of luck to all,
rpm |
