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Technology Stocks : BroadBand Technology(BBTK)

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To: SWANKDUDE who wrote (1658)	7/21/1998 4:03:00 PM
From: Ray Johnson	Read Replies (1) of 1797

I do not have the answer to that question. But I will say that you are Right ON THE MONEY by stating that the street doesn't care! If your last quarterly earnings was a LOSS, it matters not what you say or do unless you can provide a check from account receivables that show revenue will be greater than expenses for the current quarter. Then maybe analyst will start to inquire about those new strategies and the new direction of BBTK. Until then the thought is, money was lost last quarter, BBTK management has not informed us of anything different. Analyst expect BBTK to loose money this quarter. Even if the restructering of BBTK was made public, no one presumes this will have an immediate effect on quarterly earnings. If that 10,or 12 million cash that was paid by Bosch to BBTK is posted towards revenue for the second quarter, quarterly earnings can change quite significantly from the 1st quarter. The transfer of approximately 50 employees to Bosch and other expense reduction plans will not reflect on 2nd quarter earnings but it will show up on the 3rd quarter earnings report. I would guess it would be quite an impressive reduction in expenses when 50 or more employees get dropped from the payroll, all employee related expenses drop also. Go back and read the press releases related to the Lucent agreement and the Bosch agreement. Lucent guarantees BBTK a certain dollar amount of business over 3 years. I can not tell you when or how the payments will be made. Bosch will also pay BBTK royalties on any FSAN product it sells. BBTK stands a great chance of realizing a positive earnings quarter, an even greater chance in the following quarters if Bosch can make a big sale. The reduction in staff should bring BBTK to the breakeven point. Break even and positve earnings will make the street care. Short term you may be holding the bag. Long term you may have a winner. Only earnings will tell.

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