FSCX Shareholders Meeting Notes
Hello Scope,
Well, I never thought I'd see the day when you would post a positive note. Things must be looking up for FSCX.
Here is a copy of a Yahoo! FSCX post discussing the recent shareholders meeting. I can not validate its authenticity or accuracy.
Stkpker Mar 19 1998
10:29PM EST
I am impressed with people's honesty. I have been slow to come forward. I am long 26,000 shares at 3.50 average cost. I am a frustrated, but nevertheless still a believer in the prospects for the future of this company. I might add that I too was disappointed by the recent quarters top line. I, as many, had expectations for larger numbers.
I was at the annual meeting held last week. For those not there. It was fairly short. After the formal part of the meeting, Ed Bursk delivered a 30 min presentation on the company. Madsen and Bursk then answered 4-5 questions for about 15 Min. When the questions starting getting hard, Madsen and Co scooted. There were, by my estimation 10 people not with the company in attendance.
Regarding the presentation, I was very impressed. Not being that familiar with the industry, it was hard for me to compare with competitors. However, I was struck by the breadth and scope of the technology that Fastcomm possesses. I was also impressed by the people they are doing business with. It also appeared that they also have a wealth of opportunity on their plate. If the can close on a percentage of what they have in the hopper we will all make a lot of money. From System One, To the Oregon State Lottery, to the bank in Venezuela. If these are representative of the kind of opportunity that lies out there, then these guys should ring up a lot of sales.
Fastcomm strategy for those who are not familiar is to be the "value" leader in their market. I believe that their product and strategy and sound, but they obviously have not executed. execution has been the problem by Madsen's own admission. He says, that one of the reasons Alcatel relationship has been slow to develop is because that had to secure a Brand Name for their Frad Line in every country they deal in. This supposedly took 12-15 Months. In addition the sales people in all of the different Alcatel offices had to be brought up to speed. Madsen said, and I an not sure what quarter he was referring to, but I presume that it was the most recent just finished, that the company booked, not shipped, $4.4 Million in Alcatel Business. I sure do hope we see that show up soon. Somebody asked about the lack of outsiders on the board. Madsen responded that this was something they were looking at changing. Somebody asked about the balance sheet and plans for financing. Madsen was evasive, but says that will be no problem. Somebody asked about how we will know whether they on the right track. Madsen said, "look at the revenue numbers, they will show what is going on.
All in all I concluded that the company seems to be well positioned, they just have to execute. 1998-1999 are the years for that. I also believe they are going to have to raise some money. I am somewhat worried about how they are going to do this. I do not want to see a lot of dilution. I also get the sense that they are looking at doing some other strategic, how large, I do not know. I personally believe there might be some truth to the Netrix deal. Ed Bursk used to work for Netrix and said they are a good company. He called them a non-competitor of Fastcomm. I guess they sell into high end.
I hope that helps. |
