SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : COMS & the Ghost of USRX w/ other STUFF
COMS 0.00130-18.8%Nov 7 11:47 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dwight E. Karlsen who wrote (9211)11/14/1997 12:35:00 PM
From: Valentino  Read Replies (2) of 22053
 
Re: High Inventories: My Read

My hypothesis goes like this:
To win the standards battle, USRX wanted to get as many X2 modems in distribution channels as fast as possible. This would accomplish: 1, preempt Rockwell;2, jump start the installed base for X2;3, motivate the distributors;4, influence the ISPs.
This aggressive strategy was the correct response to the looming X2/FLEX standards fight. It's downside; if the standards fight was drawn out, high inventories. This is what we are seeing today. I take issue with the innuendo (NY Times)being spread that somehow this inventory problem is a result of USRX's sinister motives to falsify
sales figures and pump up their income statement to raise their acquisition price. What is evident is that once the high inventories became a problem, COMS/USRX used accounting slight-of-hand to minimize
the damage. I think it would have been extremely short sighted for Eric B. to have immediately announced that X2 modems weren't selling as well as anticipated. Can you imagine how many ISPs would have committed to FLEX after that kind of annoucement.
My point here is that COMS management is sound. They're not a bunch of sleazeballs as Greenberg and the NY Times would have us believe.

Valentino
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News