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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT
GSAT 62.25+6.2%Dec 19 9:30 AM EST

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To: Jeff Vayda who wrote (4449)5/4/1999 11:14:00 AM
From: John Stichnoth  Read Replies (1) of 29987
 
I did not ask in that way, assuming that she was talking about cumulative (i.e., total produced to that date). But, you've just seen where my assuming has gotten me!

There was no dispute over planned number being produced at year end, i.e., 40,000 per month running rate. But, again, that doesn't work arithmetically during 2000: (300K - 130K) / 6 months = 28.3K/mo.), unless 2Q rampup to 24 gateways is earlier than June (or, see next paragraph). The 300,000 is however stated as a minimum number. It is what G* has committed to buy and Q et al have committed to produce by a specified date (from 10K).

Added purchases will come directly from the SP's to Q et al, and would add to the figure. Jeannette Cronin (IR) seemed to be making the point that the 300K was the sum of initial allotments to the various SP's for their respective gateways as they started service. As they sell their initial allotments, they will deal with the user terminal manufacturers directly, leaving G* out of the loop.

The 300K by x date in the contract seems to have sufficient leeway to allow Q et al to face unexpected production delays and to supply reorders from the early gateway SP's. That is partially supposition on my part.
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