Presidents Message
Dear Shareholder or Franklin Visitor,
Spring roared through like a Cyclone - presenting several large
unexpected business possibilities! For those of you who follow our
corporate progress, you know that a major milestone was reached when
we began shipping the Beta units of the D-Mark Cyclone product. This
unique product combines a modem and channel bank into a single
compact, simple-to-use unit that can save the typical ISP money, mess
(from eliminated wiring) and man-hours.
The first generation Cyclones operate at 33.6Mbps. We have recently
confirmed a commitment with Rockwell to implement their state-of-the-art
K56flex technology into the Cyclone. The K56flex has completed
microcode testing for inclusion in several additional Franklin products and
services, as well. These new applications will be rolling out later this
summer. An early beneficiary will be FNet, one of our two Internet
divisions; FNet subscribers and customers with 56K modems will be
assured of the fastest available connections.
We are in the initial stages of a national marketing campaign to introduce
the Cyclone to the marketplace. (Look up our ad on page 71 of the
current Computer Telephony-it's the issue with Bill what's his name on the
cover)
During the spring, we took a number of key personnel to Minnesota for an
intensive training session with our Digital Xpress counterparts, as well as
representatives of Boeing, Conus and Computing Devices International as
preparations speed toward the introduction of the Franklin Xpress line of
products and satellite services. More on this soon.
To facilitate increased demand for our hardware, Franklin moved our
manufacturing division into a second building about a quarter of a mile
from our corporate headquarters in Westlake Village, CA., effectively
doubling our physical plant. This has allowed us the space to expand our
sales division, as well. We currently have about half of our new sales force
trained and working; we are continuing the search for additional individuals
who will round out the department. They're going to have to be bright,
savvy and energetic to keep up with ones we've already hired.
In addition, we have opened a new sales office in Raleigh, North Carolina,
in the middle of what has been dubbed the "Research Triangle Region."
This area is experiencing explosive growth in high tech companies-with our
cutting edge philosophy, Franklin can't afford not to be there.
Much of our attention is currently focussed on developing the prototype of
our eagerly anticipated Voice Server. We hope to have a working model
to demonstrate before summer's end. This will be a key ingredient as we
continue toward the IPO for FNet. Watch our web site for progress
reports.
As our investors are keenly aware, we've been suffering through the
mandatory "Quiet Period" in conjunction with the filing of our S-1
statement. We have responded to the SEC's response queries following
the filing and look forward to receiving SEC approval during the next few
weeks. This will return Franklin Telecom to full reporting status. It will also
position the company for a move into the NASDAQ Small Cap market
which will help bring additional stability and growth potential to our stock.
In particular, we look forward to the conclusion of the Quiet Period so we
will be able to report more fully on our recent activities. There are a
number of exciting projects on the Franklin horizon!
To learn more about the Franklin Family of Companies, keep reading. As
you can see, we're in the midst of a very exciting era. We appreciate your
interest in Franklin.
1997 is proving to be a good year for us.
If you want to know more, keep reading! Thanks for your interest in
Franklin. |
