Now let's get right to those earnings just reported by fcm.
First off is usat still a customer ???? On the surface it would seem that at the very least we have conflicting reports whether they are or not.
1) May 13, injunctive relief filed by fnet stating usat suspended shipments and payments.
2) May 25, Peter Buswell message speaking in the present tense, references a customer, which it seems would be usat. His message is 12 days after the injunctive relief is filed by fnet which states that usat suspended shipments and payments.
3) June 18, fcm's press release quote; "Our first order for the Breeze was placed by USATalks today for 1,000 systems."
4) June 25, dbest claims that he has talked to Helen West at fcm and says that she claims ( item # 5 post below ) usat is still a customer.
ragingbull.com
5) July 21, chairman's message makes no mention or reference to usat specifically. Although he does mention three new resellers, then changes that to six new resellers, then changes that again back to three new resellers.
NOW WHAT DO THE REVENUES SAY AS IT PERTAINS TO USAT STILL BEING A CUSTOMER
1) We know that usat ordered 3.75 million dollars in product on Feb. 23, which coincidentally corresponds almost exactly with product sales for fcm's quarter ending March 31. Product sales were 3,762,000. Interesting Right
2) We know this quarter ending June 30, was started with a 2.6 million dollar backlog as referenced below.
ftel.com
3) We know that fcm yesterday reported a 4 million dollar quarter.
4) We know that last quarters numbers for Telephone and Internet services were 508,000.
5) So we add the backlog at the beginning of the quarter which was 2.6 million, assume for the sake of simplicity that fnet revenues ( Telephone and Internet services ) were flat at 500,000. We are left with orders during this quarter for product totaling 900,000.
6) Now we go back to peter Buswell's comments about expanding this network into the next century, and I quote;>>>>"I would share that this network is planned to expand significantly, on a monthly basis, well into the next century."<<<<<<<<<
The total for this quarter revenues represents 1,400,000 dollars when the backlog of 2.6 million is taken out. That is a significant difference than last quarter. Any figure less than 6.87 million shows that sales have contracted not grown. That is undisputable fact.
BEFORE I FORGET THIS MOST NOTABLE ITEM THAT IS MISSING FROM FCM's ENJOYABLE 2nd 4 MILIION DOLLAR QUARTER's PRESS RELEASE OF YESTERDAY, WHICH INCIDENTALLY IS INCLUDED IN FCM's LAST EARNING's ANNOUNCEMENT IS THE INSIGNIFICANT FACT THAT THEY DO NOT CLAIM A BACKLOG. NO BACKLOG AS IN NADA, NIL, NONE, NOT ANY BACKLOG. What happened to this statement by Mr Buswell; ;>>>>"I would share that this network is planned to expand significantly, on a monthly basis, well into the next century."<<<<<<<<<
Now take this in the light that IF usat is still a customer, it is still under an SEC investigation as of it's latest filings. It has been delisted and since then NOT ONE, NONE, NARY A ONE MM has stepped up and filed the necessary 15C-211's for it to resume trading on even the OTC BB.
For you bruce, this happens to be the same situation that DCTC is currently in. It also has not resumed trading on even the OTC BB again.
Don't forget to read this one sentence from usats filing over and over. >>>>>>>The Company anticipates that the required funds
will be obtained through the sale of additional equity securities, debt financing and/or equipment lease arrangements.
Or this entire paragraph;
During the quarter ended March 31, 1999, the Company completed $6.1
million in private debt and equity financing as compared to $9 million for the year ended December 31, 1998. Approximately $20 million in additional capital is needed to fund the Company's planned capital investments and budgeted operating expenses in 1999. The Company anticipates that the required funds will be obtained through the sale of additional equity securities, debt financing and/or equipment lease arrangements. However, the Company's ability
to raise capital has been adversely affected by the trading suspension invoked upon it by the SEC from January 29, 1999 through February 12, 1999, and its aftermath, and may be affected by certain pending class actions. The on-going SEC investigation may further hinder the Company from attracting new equity investors and lenders, and there is no assurance that capital can be raised through further equity sales, new credit facilities or other financing on terms that will be acceptable to the Company.
AGAIN AND AS ALWAYS WHO IS GIVING USAT THIS MONEY ???????
Oh, by the way check that figure that usat received in the last quarter for private debt and equity financing. You know the company still under SEC investigation because questions were raised about the accuracy and adequacy of the publicly disseminated information concerning, among other things, the status and extent of the Company's business operations. The figure is 6.1 million, isn't that ironic that this figure is so close to fcm's reported 3.75 million for last quarter and the it's backlog of 2.6 million, when those two figures added together. All that money went to fcm from a company that is being invetigated for the adequacy of the publicly disseminated information concerning, among other things, the status and extent of the Company's business operations. WOW
One final remark is that I look forward to usat's quarterly SEC filings and fcm's audited annual report. They should be most interesting, don't you think ??????
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