MUST READ - SI MESSAGE From Frank Peters:
This was posted on the FTEL thread. I am placing it here for those that scan the FNET thread that might have missed it.
THANKS FRANK!!!!!!!!
=========================================
SI Board
July 11, 1998
In response to the misleading and tainted information recently brought to my attention by concerned shareholders, I have officially directed our corporate counsel to file for a subpoena requesting the true identity of certain individuals from Silicon Investor. This is part of an on-going investigation to determine whether there has been a deliberate attempt by individuals or groups to influence or manipulate the trading of Franklin Telecommunications Corporation's stock.
We will prosecute, to the full extent of the law, anybody attempting to injure our company through slander, libel or manipulation of the market in such a way as to prevent the free and natural trading of our stock-especially when this might result in damage to our shareholders.
To anyone who might seek to injure us - may I suggest you find some other outlet for your hostility instead of abusing good people whom you know nothing about. Take the time to research your topic. I invite all to call me and visit us - kick the tires - see our products working - hear the quality, then make your judgement. Franklin welcomes visitors. In the last year, we've had around 200 people, mostly shareholders, who have toured our facilities, met and talked with our personnel, and had their questions answered frankly and honestly.
It is apparent by the number of posts, much has been written about Franklin on this public forum. I assume that most messages reflect honest opinions of shareholders, both pro and con. I view this to be healthy and would be the first one to encourage such debate. It is when misleading information is presented in such a manner that it paints an inaccurate picture that I feel it is necessary to respond.
For example I have recently been made aware of a message that stated Franklin Telecommunications Corp. has reinvented itself for years and years, coming up with little or nothing to show for it.
During my tenure in running Franklin for the past 20 years we have reinvented ourselves more than once. We have changed direction and occasionally dropped product lines to make room for new ones. That is all part of the technological environment in which we operate. This also reflects our entrepreneurial ability to adapt and seek new opportunities as they evolve. Our 20-year history (which is available for examination on our web page) reflects growth from zero in 1984, after buying Franklin back from Exxon, to sales of $50,000,000 in 1989-which made Franklin the 23rd fastest growing public company in the world according to Inc. Mag. (1989). So to say we have come up with little or nothing to show for it, is totally misleading.
We then sold the high roller, low profit PC and Shamrock divisions in 1990 to focus on data and communications. Our first big sale was to Citibank for controlling their ATM's in the branches. We still continue to sell these WAN products to Citibank even today, as well as to 30 other banks all over the world. This has resulted in installations or our WAN equipment in 20 countries (100,000 nodes). Unfortunately the banking industry has also changed, with less bank branches being built, trending towards consolidation, resulting in declining sales.
This necessitated our quest to develop new products and new markets while still servicing our existing customers. My point is persistence, commitment, and quality are all part of our history, for that we are proud. We have persevered for two decades and as a public company for 12 years, with both our successes and failures being displayed on the record, for all to see.
This record is unlike many other companies faced with unsatisfactory results, who then file bankruptcy and started new businesses-often under the direction of the same people utilizing the same skills and methods of conducting business. This, of course, makes it hard to track and keep tabs on them.
In 1992 we concentrated our efforts into research and development of products designed for integration of data over voice circuits. Back then, only 6 years ago, there were more voice circuits, now less than a decade later there are more data circuits, in fact you can barely tell the difference between them.
Then in 1996 the Telecom Act was passed bringing about a revolution for NEXT Generation Telephone companies (IP Telephony). Franklin has 10 years of technically advanced proprietary 'tinker toys' which are components that can now be adapted and re-assembled into IP Telephony products. These same designs, of software and hardware, have put us in a unique position to prosper and hold promise to nurture our growth. Rarely has there been put to better advantage, our consistent philosophy of anticipating the new directions in technology.
That is why I find it very disturbing to hear of someone who repeatedly focuses on only the recent past, and then selectively picks and chooses bits of information (and often, misinformation) in a way deliberately and maliciously designed to create an atmosphere of doubt and distrust.
I don't want to mislead you; sure we deal with problems every day. The big problems I report to you, the little ones we solve - all one by one. We have missed shipping dates (who hasn't) and we have blown our horn before the music was finished, regretfully so. Disappointments and triumphs are part of any business, but it is measurable progress that counts. We continue to be positive and enthusiastic about our prospects and our ability to meet objectives. Rightfully so, we have been here, through thick and thin, for two decades and are now backed with the experience, talent, and technological achievements.
Remember, the road to success is constantly under construction.
I realized last year that my 5 year vision included the building of, and the accomplishment of diverse tasks which I couldn't do by myself . I have now hired 5 new talented executives who do know HOW to accomplish WHAT I dream. It took a while and I may have been a bit late to see this, I admit--- but we now are on target so watch our dust.
This isn't just a matter of moving to the next step-with the team we have now, we intend to skip ahead several levels.
We as a company are rich with many types of assets.
As shareholders you are one of our company's greatest assets, and believe me, we know it. Franklin has a core of knowledgeable, tenacious and loyal shareholders, for which we are forever grateful.
That is why I want to officially be on the record in telling you that we are committed to leveling the playing field for trading our shares.
One last thing I want to share with you: I am still, by a wide margin, the largest shareholder in Franklin Telecom. I have stopped the 144 automatic filings because it has given the impression I was selling stock. I did this because I thought the price would be well over $10 at which point I would have sold a bit. I haven't sold a single share since January. With the prices at the current level, I have instructed my broker to buy more. You could say I don't actually need more Franklin stock, but I believe in putting my money where my mouth is-and in this case, I have a high degree of confidence that my investment is going to pay off.
Frank W. Peters
Chairman & CEO, Franklin Telecommunications Corp |
