Hi Dan - The only thing I could find was what was printed in the S-3 filing dated September 8, 1997.
sec.gov
It appears that VTEL (as a result of the CLI merger) is party to the suit and both (CLI and VTEL) will vigorously defend the claims. The case has been set for trial in the fall of 1997.
"...In a complaint filed December 20, 1993, in the United States District Court in Dallas, Texas, Datapoint Corporation ("Datapoint") alleged that CLI had infringed two United States patents owned by Datapoint relating to video conferencing networks. The complaint seeks a judgment of infringement, monetary damages, injunctive relief and attorneys' fees. CLI responded to the complaint by denying the material allegations of the complaint and asserting affirmative defenses. Discovery has commenced in the case. On September 27, 1995, CLI filed a motion to construe the scope of the patent claims at issue in the litigation so as to elucidate whether Datapoint could assert that CLI is infringing the patents in suit, or whether Datapoint's patents are invalid in light of the prior art. In April 1996, a Special Master submitted a report which did not recommend that the Court adopt CLI's position set forth in the motion. The Count in September 1996 adopted the report of the Special Master that the claims of the patents in suit be construed in a manner favorable to the plaintiff. The case has been set for trial in the fall of 1997. Recently, CLI filed a motion seeking to join VTEL as a party to the suit. CLI and VTEL are vigorously defending the claims..."
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The company also has filed to issue more Common Stock (2,879,829 shares) which are for the purpose of paying off the warrants issued as a result of the CLI merger.
"...This Prospectus relates to 2,879,829 shares (the "Shares") of common stock, $.01 par value per share (the "Common Stock"), of VTEL CORPORATION, a Delaware corporation (the "Company" or "VTEL"), that may be offered and sold from time to time by certain stockholders of the Company (the "Selling Stockholders"). Certain of such Shares are issuable upon exercise of Common Stock Purchase Warrants ("Warrants") issued to certain of the Selling Stockholders by Compression Labs, Incorporated ("CLI"), a company acquired by VTEL on May 23, 1997..."
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OTHER COMMENTS:
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I would think the stock might be under pressure if those parties that received this stock sold it in the open market. It appears that no significant sales have occured yet and perhaps a review of the insider sells and buys might indicate management's expectations for the future. I would think they would vote with their wallets by buying more shares at these prices if they thought the company had a good future.
This investor is waiting to see the Q1 1998 and Q2 1998 results which is sufficient time to determine if VTEL can get back to their previous growth rate.
EKS |
