I have been watching this stock for the last few days. I cannot figure out why it dived, except for two things. Please tell me
if I am way off.
1. It is in the networking category, which has taken a beating.
2. From the 10k:
In particular, PictureTel Corporation, currently the Company's largest customer, has announced its
intention to develop products related to the new H.323 standards for conferencing over local area
networks, corporate intranets and the Internet, which are expected to be competitive with products
the Company currently has under development. Furthermore, in April, 1997, PictureTel announced
that it had signed a definitive agreement to acquire MultiLink, Inc., a developer and supplier of
multipoint control units and a current competitor of the Company, in an effort to accelerate their
initiatives in this area. The impact of the acquisition of MultiLink on the Company's relationship with
PictureTel, and on the Company's future sales and operating results, is unclear. |
