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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail

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To: Filippo Zucchi who wrote (947)1/5/1998 7:17:00 AM
From: Robert Morrison  Read Replies (2) of 1800
 
Filippo

I guess when you add Bud Hawk's $10M in back orders to what CYI will turn over for the year then he more than made his $20M revenue projection albeit not in the correct sense of the word: revenue which of course means shipping product not just gathering orders.

I spent some time working over the numbers, looking at costs, contracts announced and probable times of shipment and it is clear that all Cycomm has to do now is get product out the door to give us a solid turnaround in the second quarter of 1998. If we can get more contract announcements over the next quarter these will support increased revenues in 3 and 4Q of 1998.

With the PC Mobile on a gross profit of some 45% and operating costs under control the contracts already announced, once shipped will go straight to the bottom line.

The big question is Tempest and whether this can regain its historical sales, by my reckoning, of $2M to $2.5M per quarter. The gross profit percentage with this product line is pretty lacklustre compared to the PC Mobile (20% odd) but it will pay the rent leaving the PC Mobile to be the earnings engine. The new CEO at XL Computing was hired to address this specific problem.

Omnidata is the unknown quantity at this time. Hopefully it is profitable and can only add to the anticipated results.

Rob
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