Scott, I think you are missing the point here.
Q.<"An important contributor should be PEARLgold, which is expected to be in serial production by the middle of this year.">
A.This means full tilt, including OEM production from the new factory lines build for this purpose.
I think we all know what it means, but the point is that previously PRST gave the impression it would be in serial production in January, not middle of the year meaning further delays in revenue. I am not saying PRST was bad for making the announcement, major projects almost always run late. The point is it is a delay in revenues.
Q.<Sounds like more cost overuns here Neil. With only $4.8MM left in their line of credit and cash/investments down to around $5MM at the end of September, it sounds like the company might have to raise additional financing soon.>
A. You act as though PRST is broke and has no sales. Even using your worst guess at sales and revenues, it should leave them with cash reserves.
I don't know about that. The working capital decreased by almost $1 million from Dec 31, 96 to Sep 30, 97 and that includes raising $4 million through stocks sales and a $6 million dollar tax benefit. It appears they might need some kind of external source (i.e. stock sale, increased credit line, not from operating profits) of funds to continue to operate and expand.
And the last part, we just agree to disagree. You don't see revenue decrease from H'berg and I do. You see immediate profits from new alliances, I don't. You see immediate profits from patents, I don't. So I won't argue those points with you.
Brent |
