VTEL: Anyone else follow this? Message Board

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Technology Stocks : VTEL: Anyone else follow this?

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To: C.Andrew Battinelli who wrote (1005)	7/22/1998 6:45:00 PM
From: E_K_S	Read Replies (1) of 1214

Hi Andrew - I have not finished my research and perhaps there are others on this thread that can add to my information. PLCM has three divisions (1) audio (classic polycom speaker phone line, 50% of revenues this quarter),(2) video (viewstation, just starting to ramp up, only shipping half the quarter (PCTL & VTEL competition and threat - Brian Hinman, now chairman, was also PCTL founder) and (3) data (showstation - an IP based high res color 'remote viewgraph' machine capable of one to many). PLCM achieved sales last quarter of $25 million up over 126%. They have their eye on the VC conferencing market and are ramping up new products with the goal of selling units and building their installed base fast. They will sacrifice short term profits to do this and as a result competition will be fierce. I just do not think VTEL see's them as a threat since I have heard nothing from our management or from our marketing group. In fact the new VTEL commercials help PLCM's sales since the commercial promotes the general VC system concept...not the "VTEL" system solution only! Finally, PLCM is also a low cost producer. Product margins before SG&A are 46%..very good! Net profit is now running between 20% to 25% of gross sales (and increasing as they become more efficient). Vtel will have a hard time competing with the tight financial controls that PLCM's management is delivering. But the biggest threat to VTEL is PLCM's excellent marketing team and use of several stratigic marketing alliances with companies such as MCI, Siemans and Lucent Technology (https://www.siliconinvestor.com/readmsg.aspx?msgid=4240856). All completed within the last year too! Where was our VTEL marketing group....just shutting down foreign offices and downsizing their marketing programs...go figure??? To summarize, PLCM is making money and growing VTEL is not. EKS

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