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Technology Stocks : Compression Labs, Inc (CLIX) - an Acquisition Target

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To: James Nelson who wrote (345)2/20/1997 5:04:00 PM
From: E_K_S   of 375
 
Hi James - Vtel released their earnings last night and dissapointed the street by <$0.02> (they reported $0.06 and they needed $0.08). Revenue growth and margins were good. There were also some one time revenue "service" gains and operating expenses were still on the heavy side. Let's hope that CLIX can surprise the market by an extra $0.02 per share ($0.05 - $0.08 is my guess) and that our management can exercise some of their cost controls to the VTEL group. This is quite possible as several of the overhead functions can now be consolidated.

Stay focused on CLIX's R&D expenditures as this points the way for future sales and growth.

VTEL traded with heavy volume and was down about 1/2. CLIX followed accordingly down 1/4. For more detail on the VTEL earnings and revenue numbers go to the VTEL board. Some interesting comments regarding the conference call and the positive statements regarding the proposed merger.

Like to hear your comments.

EKS
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