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Technology Stocks : Ampex Corporation (AEXCA)
AMPX 11.32+4.7%Nov 28 9:30 AM EST

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To: Glenn Perry who wrote (3928)12/2/1998 10:14:00 AM
From: harry goldenberg  Read Replies (1) of 17679
 
Some of the messages are making this thread sound like a support group ie AA for Ampex Annonymous. I had 30,000 shares at 3.20 and continued buying up to 9 and ..........
In any event a friend who has a large position and who I believed was a terrific financial analyst (he continues to be bullish with ampex) sent me an e-mail;
"There were comments on the board last month that AXC was losing money on an operating basis. It appears that way from the financial statements, but I believe that Ampex does not include its royalty stream(whcih is hardly an extraordinary item) in its operating earnings. At the same time, it does expense its R&D which certainly contributes to the royalty stream. I am sure what is done is consistent with GAAP; however, when analyzing the company's financial health, it would seem that royalty revenue (which is certainly recurring in Ampex's case) should be considered in the same category as the R&D which is the prime contributing factor in generating such revenue. If Ampex does end up with a substantial participation in digital tv, a great portion of its revenues may come from royalties on items which it has patented but ends up licensing and not manufacturing.
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