Corvis Corporation (CORV) Message Board

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Technology Stocks : Corvis Corporation (CORV)

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To: hal jordan who wrote (1553)	6/13/2002 12:09:22 AM
From: The Ox	Read Replies (1) of 2772

At a burn rate of say $40 Million per quarter, the company should be able to wait for the long haul market to turn. Company guidance is for there to be $500 million in cash at the end of 2002. This leaves them 3 years worth of cash to sustain R+D and limited new customer/product trials. Assume their cash burn rate will increase as the market improves since they will be need to have a sales push. Will the market be ready for all optical long haul systems by 2005? From my back of the napkin calculations, CORV will need to generate about $60 million in quarterly sales by early 2005 to continue on their current path. If the company's mgmt believes the market for their products will turn before 2005, then they should strongly consider buying back some of their outstanding stock. The key is when -or if- they can reach the break even point. Will they find a market for their products within the next couple of years....? If you believe that the answer is yes, then I would consider buying but I suggest that one should wait for a signal from mgmt. Insider buying or a stock buyback would be the indicator I'm looking for.

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