I was also at the meeting on Friday --- just got to a computer now. Scott Ozer's accountant asked about the NMS listing as part of a more lengthy question highlighting a number of problems that Osicom has had over the past year or so. It was clear to me that Par would like to discuss the NMS situation openly, but he stated that he has been instructed by Osicom legal representatives not to comment on the NMS listing. Period.
By the way, Par pointed out that Osicom employees have over 8 million dollars in the 401(k) plan....
I asked: "assuming that 30 million additional shares are authorized, what are the chances that some of those shares will be used for a secondary offering?" Par responded that there were no plans for a secondary offering in the "near future", and reiterated that the shares would be used for the reasons delineated in the proxy. I then asked if the shares could be used for a secondary offering in the intermediate or long-term future. Par responded that the shares "could be used for a secondary at some time." I was sorry to hear that, but not surprised.
Also interesting --- this might have been reported previously on this board --- someone asked about the production capability for Gigamux -- in other words, if the orders start coming in fast, can Osicom deliver? The response was that component shortages will inihibit production long before Osicom reaches its own production limits...I think that Xin said that the componens in shortest supply were lasers, but I might have heard wrong...
Gorman said that gross margins will improve in the 4th quarter over the 3rd.
I talked with Sharon Chadra and Xin Cheng before the meeting -- both very personable and pleasant, Xin obviously very excited about the Gigamux --- says that Osicom has a 6 month technological lead with the product and that his goal is to maintain that lead....
That potential future dilution bothers me --- I think it's a good bet that we'll see it sometime, but when, and how much???
Somebody asked about the next meeting -- it will be held at company headquarters in Santa Monica on 12/22 - at 10 AM, I think.
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