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Technology Stocks : SDLI

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To: w2j2 who wrote ()8/15/1997 3:32:00 AM
From: Toby   of 297
 
From the 10Q: sec.gov

Second quarter 1997 product revenue was primarily impacted by the
longer than expected qualification process by new telecommunications
customers for one of the company's 980nm pump module products. This
longer than expected qualification process, in combination with the
transitional gap in new product shipments during the first quarter of
1997, resulted in a 3% decrease in product revenue reported for the six months ended June 30, 1997 when compared to the same six month period in 1996.

Looks like the company is still getting smoked in the 980 nm laser market by Uniphase Laser Enterprise. This is a nine month ongoing story. You could play it either way. The company is in a malaise, but when the problem is fixed, earnings should see a pop.

In another part of the 10Q ongoing yield problems are briefly mentioned.
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