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To: Lizzie Tudor who wrote (70717)7/29/1999 9:12:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 

I tried to do it once and I came up with late next year sometime they would have to have
another debt offering if they were burning the same amt of cash. But, since then they
have ceased with the advertising a little, I know that cost a lot, and as I say I think the
losses will start to decline a little once they get the electronics and toys going... I don't
think you can assume past burn rates will hold one way or the other....


Michelle,

Projections may only be based on loss and revenue projections using the consensus. Using those numbers, cash will be gone June of 2000.

The problem is as you stated. There are always revisions to losses and revenue. In addition, the free cash flow model could begin to help as revenues increase. We should see a large increase in Q4 99 but the competitive landscape could change a lot by June of 2000. This is not a stagnant market<G>

Glenn