Just a few notes on Teletek from a Teletek shareholder. The earnings in the Investor's
Business Daily is an ad in the "Investor's Newswire" section, and is the original press
release, not the revised one.
The revised press released, dated Jan 25, was not carried by any of
the wire services that I know about. I called the company and they faxed it to me.
For those who missed it I'll summarize it here:
>> For the second quarter, sales $9,792,192 versus $1,115,004; net income before
non-operating charge was $1,143,380 or $0.14 per share versus ($581,999) or ($.15)
per share. A non-operating litigation charge of $575,000 reduced net income
to $568,380 or $0.07 a share.
>> TLTK has entered a rapid growth phase that is expected to continue over the next
few months. Management currently anticipates third quarter net sales of approxamately
$12.0 million and net income $900,000 after a final litigation charge of $575,000.
A further gain in net sales accompanied by a significant expansion of net income
margin is anticipated for the fourth quarter ending June 30, 1996
To address some other questions, the company's Hi-Rim Communications division
is the only division and started not too long ago, this is why the president says the
company (Hi-Rim) is new, even though older TLTK divisions were sold off. Also,
the big run up in December was not because the earnings were anticipated
(the news release about that was released in November). The reason that
the stock ran up os because it was the Company of the Month in the Bowser Report,
released the day the stock started moving up in December.
Note: I have no "in" with the company, just a shareholder as of late last year.
It is my impression the company has had very little experience in dealing
with the wire services and investing public. Hopefully, this quarter's experience
will have been their lesson.
John |
