And, a little bit more FTEL info.
Raleigh, I asked Helen West some questions that I felt were on all our minds. Here is
what she had to say:
Subject:
Re: Audit
Date:
Fri, 13 Dec 1996 17:22:53 -0800
From:
Helen West <hwest@ftel.net>
To:
diloreto@concentric.net
Hi David. I'll try to reply point by point. Here goes:
At 04:43 PM 12/13/96 -0800, you wrote:
>Helen, I am a shareholder for about a year now. I own 10,000 shares.
>
>1. When will the "Letter from the President" be updated? It is a
>little old at 11/15/96.
A: We have been completely snowed under, what with demand for product and
arranging all the necessary installation and backup for the expanded
Internet service. Frank hasn't had time to say "Boo," let alone update his
page, which, incidentally, he writes personally. Perhaps over the holidays
(we're taking two days for Christmas at Franklin) he'll do it.
>
>2. What is taking so long on this audit? When will it be done?
A: However impatient you are for the audit -- we are MORE so. Earlier in
the week the president of the accounting company promised it by week's end
-- which is this afternoon. We're looking for it. Last year, when the
audit was completed and Frank booked them to return this year, he made a
deal which was financially very advantageous by agreeing that our audit
could be postponed until after the firm had completed the audits for other
clients who are reporting companies and hence bound by SEC schedules. He
did not anticipate at that time that this year we would be eagerly awaiting
a return to reporting status ourselves, and dependent on the arrival of the
audit in order to file the Form 10.
>
>3. When will we be able to get some numbers? How many customers are
>signed up on FNET? At what rate? Revenue?
A: I have forwarded this question to the appropriate departments. When
they respond, I'll forward the information to you.
>
>4. What kind of sales are happening at FTEL?
A: We are still seeing a steady stream of orders, both for our Channel Bank
products and other board products. We have ramped up to a much higher level
of production than the company has seen in several years and are shipping
product daily. After a running start, we're up to speed on deliveries for
Channel Banks and slightly ahead of schedule on some other board products;
some orders, like those to Raytheon, have on-going delivery schedules which
we are meeting.
>
>5. Last March there was a rumor floating around that FTEL would be at
>$10.00 by year end. Frank Peters stated that he didn't know about
>$10.00 by year end but he predicted $8.00 within a year. That would be
>March '97. Would you ask Frank if he still hold's by this prediction?
>A: I remember this particular "rumor" very well. You're correct about the
dates; the target date was mid to late March but Frank has always held that
he was setting a goal rather than making a prediction. However, despite the
end of the year doldrums which seem to affected our stock prices the last
few weeks, we expect to see a substantial turn upward as the new year
begins. [An interesting side-note: during this week, we spoke with one of
the major Market Makers for FTEL Stock: They told us their in-house
analysts were projecting us at $2.00 for the New Year and around $5 by April.]
>6. What is the best guess on when the FNET IPO will happen? It was
>rumored about 6 months ago that it would happen around Thanksgiving.
>What's the best guess now?
A: This is truly the $64,000 question. [Actually, it's worth much more
than that, isn't it? Again, there are so many variables, many of which are
not in our control. For a best guess, emphasize GUESS, one might go with a
March-April possibility. Some time in the spring. . .
>7. There is a current rumor flying around the internet that there may
>not be an IPO. The thought is that business is unprescidented and cash
>flow is strong. FTEL may self-fund the FNET program. What can you tell
>us?
A: It has been discussed. It seems as though it is a viable option. Our
board, in conjunction with our SEC attornies and other business advisors,
typically consider a wide variety of options. Remember that Franklin is
Frank Peter's "6th Child." He founded the company and has shaped and molded
it for seventeen years (more if you count the two years during which he
managed it for Exxon before buying it back.) The bottom line for him is
ALWAYS what will be best for the on-going, long-term good of the
corporation. He's not in it for the Quick Buck."
I hope all this is helpful. Have a good weekend and happy holiday.
Sincerely,
Helen West |
