ACTM $100 Million Cable Modem Contract with MOT Message Board

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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT

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To: jeffbas who wrote (240)	10/11/1997 1:02:00 AM
From: rich evans	of 1250

It is not the stumbles that matter as you know but whether ACTM can get up and participlate in the general growth projected in the ECM area with a Reasonable gross margin in the 10+ area. Can you give us a better picture of your conversation with Pino. The failure to ship a 9mill order this quarter does not seem to justify such a reaction. Is Pino optimistic that sales can resume growth in the Q4? I would not expect 30% but more in the 15% area. Did you get any indications? As to margins , this is apparently another problem. Less sales mean less overhead spreading. Did you discuss margins or get an indication of future margins? To loss .5 mill it looks like gross margins came in at only 5% . This is quite a drop. Was the loss of 3 com to blame. Did they have to fill their shop with make up low margin business? And did you get any indication where they stood on capacity utilization? Lots of questions. I personally agree with Paul that such stumbles create opportunity for a good entry point if the business can be expected to correct .Do you think the 1998 numbers are doable? Thanks for your inputs on this thread. Rich

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