Spectrum Signal Processing (SSPI) Message Board

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Technology Stocks : Spectrum Signal Processing (SSPI)

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To: Brian Cunningham who wrote (2062)	12/18/1998 6:21:00 AM
From: nord	Read Replies (1) of 4400

"In reading Barry's email I am a bit concerned he is still prone to hyperbole. He comments "Our slower revenue growth is due to the drop in c4x-product revenue in the year, and is being quickly made up by c6x and SHARC -- our new products. In fact, in spite of a drop off in older product revenue we have experienced a 500% growth rate in revenue from new products"." If you read between the lines it sounds as if the revenue drop (500% + ?) is greater than the growth in new product. I hope Barry will try to do a better job modeling the bottom line by factoring in the negative as well as the positive. First Spectrum is a small company. As such the effects of a single order can affect the quarter. The company knew it was in a transition in product cycle from older cores c4 to c6 and the addition of sharc products. More significant the company was in a transition to a vertical market oriented cots oriented company. The drop off in c4x products was in part due to this transition but it was largely due to the global electronics slowdown causing established customers to holdback orders that no one knew would have the impact it did. As the new products are starting from a low base the growth in new product sales is an indicator of forward sales and bookings. My earlier comments were certainly partly emotional, having lost substantial $$ on SSPIF I too, as everyone who owns the stock is under water. I guess the question is do you believe in the future of dsp solutions market. Spectrum has the best talent, is the largest dsp soln. co., and is getting most if not all the big name contracts. It takes time to integrate three companies. The global slow down will go away. I believe Barry is honest and in fact a visionary as he has put together an impressive team ot the top and throughout the s/w and engineering team. With a little more patience we will be rewarded..ie over the next few quarter those ins will turn into wins the wins into contracts the contacts into revenue and profits! I expect the company to be profitable in q4 and from then on going forward. I also believe that the likelihood of a larger company becoming strategically involved wither a jv or equity stake is highly likely. I guess the best indicator is the list of names of customers over the last year. It speaks volumes about what I am trying to say. The last point is I found nothing in your post to be derogatory....frustration is understandable. My belief is that the stock is way oversold that we are going to see an increase in revenue and earnings that will begin this year and will accelerate over 99 to reach 100% growth in 2k going forward. If I am right than Spectrum at these prices is rediculously cheap and by this time next year the stock will be selling at a multiple of its current price. Regards Norden

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