--I didn't see any details about the one time charges in the
--press release. Did Lou provide any additional information
--about these charges during the conference call?
The press release I have reads:
"The fourth quarter loss included significant charges for items such as provisions for restructuring associated with downsizing headcount and facilities, the write-off of deferred tax assets and inventory valuation adjustments."
During the call, management stated that they had also incurred some costs associated with changes made to their manufacturing infrastructure. They believe that these changes will enable them to produce products more cost effectively in the future, boosting profits.
Lou was questioned about competition and his response was comprehensive and compelling. In his view, Truevision remains the clear leader in digital video and will continue to be so.
When asked about present and future partners/developments, he responded to the effect that they're very happy with their current partners and anticipate continually improving relationships with them.
He mentioned that several existing partners were readying new products to leverage Truevision boards and that several new partners with products not known publically before are in the works.
There was a specific question about Alpha-based solutions to which he responded that current sales into Alpha-based solutions were negligable but their expectation is that this will change because at least one partner is readying an Alpha based product. (Go Alpha!)
He indicated that MADRAS is gaining acceptance in line with their expectations.
There was a question about the direction of the company and it's approach to business (for example...why not cut your price to increase volume?) and Lou provided perfectly reasonable explanations behind the decisions they've made and the course they've charted.
The only negative thing I thought about the call (besides the numbers, obviously) was that there were very very few questions from analysts. Mind you, the questions were non-adversarial and in fact bordered on supportive, but I would have liked to have seen more of them just the same.
(I don't know about you, but I put more credence in the questions and HOW they're asked and answered than the actual announcements made during the call)
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Take all of the above with a grain of salt as this is MY understanding and interpretation of the call. As always, there is no substitute for first hand knowledge and I encourage you seek out a transcript of the call and come to your own conclusions. |
