Sector,
You know I am in the acquisition camp. At the same time, it is evident to me that the company is rapidly rebuilding and moving on towards the next step in its growth:
1. ASND has rapidly made the transition from a company that is frantic at the end of each quarter (with FedEx trucks ready to ship product) to one that is, almost unbelieveably, in a position to "cap" sales in order to build backlog for the quarters ahead. Can you have imagined this concept just two quarters ago?
2. It has commenced a massive hiring program, bringing in staff from top to bottom and in all areas of business, from technical to public relations.
3. A world class CFO has been brought in, one who has the respect of the street. This coincides with the "training" of the street to which you referred.
4. Considerable effort has been made to win market share, even at the cost of some near term margin (e.g., the recent Taiwan deal).
5. Per the CC back on 10/9, ASND is now burning money on R&D, and some dramatic new products appear to be in the offing per Maverick.
6. Expansion beyond dependence on UUNET/WCOM appears to be a priority, as there has been little public focus on that connection of late. Rather, what little has leaked has concerned things like sales to a new RBOC, etc.
So, yes, I believe the company has been positioned for a sale. To do so, they are bringing the house in order, and rapidly so. The benefit is that, if a sale cannot be consummated (or if that is not the intent at all), the fundamentals certainly are stronger and improving.
Gary Korn |
