Mr. Tang:
I think you have a tendency to overstate and exaggerate your claims. <imo>
Star's Cash flow from operations was ($451,000) for the period ending 3/31/98. Its net loss included a one-time personnel-restructuring charge of $250,000. Star has also moved out of the 33,000-sq. ft. Shaw Road facility. This should reduce occupancy cost considerably. But, more importantly, revenues and margins should begin to improve going forward. I am expecting a small improvement this quarter but this should pick up during the second half of the year.
In addition, the fact that the Company was able to obtain two lines of credit in April would indicate that the banks do not see them going away in the near future. <imo>
I am not suggesting that this Company is going to 100 per share in 1998, but I also do not think it is going to fail in 1998. In fact, I think they will succeed.
Again, can you document you comment about the CDT Army contract?
"During conversion from microfiche to optical disk imaging, we developed a large backlog of enlisted personnel records that had to be converted into our on-line PERMS system. We needed a company that could perform the work on-site at Fort Harrison. CDT is providing two daily shifts at our facility with well trained imaging technicians to scan and index more than 4.3 million images."
This was a quote from Larry G. Hibbs, Chief, Personnel Electronic Records Management System U.S. Army Enlisted Records and Evaluation Center Department of the Army.
Doesn't sound like this has happened before.
Good Luck
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