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Technology Stocks : Spectrum Signal Processing (SSPI) -- Ignore unavailable to you. Want to Upgrade?

To: WTSherman who wrote (3176)	2/14/2000 5:17:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 4400

I'll let someone else answer your question on EBITDA history. I don't recall it being used but I could be wrong. My take from the CC is that the new management is going by the maxim, "under promise, over perform." All revenue projections are based on current products. My unedited notes: <<<< New strategic plan. Anncd on Jan. 20. Two weeks ago had visits across America. Stake-holders understand need to go to new business model. When will change take place? It's already happening. Won't see affect for 6 months. Steps taken today impact down the road. Not immediately. First two quarters will be impacted by events of last year, not new initiatives. Already seeing benefits of new strategy: more inquiries for partnerships than in past twelve months. Decision making is faster. Sales force feeling optimism. Must add value to shareholders. Moving towards maturity (the Street) needs to measure us on potential. What is Spectrum's potential? DSP markets growing rapidly and we have tech. to be strong player. Particularly telecom. People waiting for evidence to be able to deliver on plans. What are milestones to judge progress? Underlying milestones are corporate objectives of business and market focus in each bus. unit. Products driven by demands of market. Will use ASIC capability to aid us. Must meet needs of target markets to be successful. Reduce time to market. Rifle-shot approach. Summary of each unit: Signal Intelligence --- most mature. Primary cash engine in 2000. Has 50 people. 3/4 of rev. in 2000. Key milestones: be selected as standard with 3 co. Sell to US customers. Launch platform in 4 Q. Locate and decode signals. Applications in telecom Radar Systems --- lots of opportunities. Ground stations need DSPs. 25% of 2000 rev. Conclude three commercial partnerships, launch next gen. signal platforms, increase by factor of 8, increase system level products. Telecom --- largest and fastest growing market. Infrastructure focused. Voice over DSL, VoIP, 3G, etc. Small org. now. Are currently expanding. Focus for 2 quarters --- market entry. Second half team will look at mid to long term market plan. Conclude alliances with software partner, line up key customers, launch products. Strengthen board. Add personnel. Will create three businesses which we can leverage to add value to company. Process will take time and requires patience. Market can hold us accountable for taking the right steps at the right time. Look forward to maintaining dialogue. Q&A: Q: Any institutional investments? A: Three major institutions. 2 in by accident through Alex acquisition. They're holding shares. 20% held by these 3. This is not sufficient. We want to increase. Key will be financial transaction which we'll be looking at in the future. Q: Summer announcement said no possibility of merger. A: Chairmanship, the company wasn't looking for new chairman. Ken Spencer was and is chairman. I had to go through same process as others. Q: Re: press rrelease last summer. A: It was in response to stock action. Lots of speculation on chat lines in response to rumors re: acquisition. Q: Signal intelligence revenues. How much on current product? How much in sensor system area? A: Year 2000 we put our revenue forecast based on today. Don't want rev. dependant on upcoming products. Going forward this could change as we add infrasture and periphery to product. Q: Sensor NextGen platform in 3Q? A: We would launch product in Q3. Start selling small number of systems in Q4. No impact on rev. till 2001 and 2002. Q: Around telecom, you want to keep info tight, what's competitive landscape? A: We picked market where barriers to entry are low. We believe quick market entry is key to advantage. It gets us into market quickly. Benefit of market is that there is no entrenched player making entry difficult. We have to convince companies we can get them to market sooner. We have to convince big boys we want to play with them. Q: (Fiberhausen Investment Management) Nikon announcement re: design wins. What guidance for revenues? A: It's always difficult to issue numbers with big contracts. They're in control. Nikon has put out press releases re: their expectations for 2000. They've said 150 steppers. Each has Spectrum system embedded. Can't disclose prices. They have stuck to 150 number. That's significant rev. for us. Q: (Global Tech Partners) Little more detail on moving your signals intelligence business to US b/c of customers. How will this happen? New facility or joint venture? A: It's internal staff. Have moved sales to Wn., DC., so they can co-ordinate sales in North America. Will incorporate as US company. Advantage is mostly --- besides customer proximit6y --- we have better access to security clearance for personnel. Next step is move more of decision-making so that ultimately we retain in Burnaby the engineering staff, but decision making will be within US company. Q: Will strengthen board in this area? A: Looking for telecom and industry experts. Q: In telecom area, what is potential revenue in target area? A: Estimate is under a billion, but grows 50% a year. Q: Is there any way we can forcast potential in that area? A: This is hard to do. First I wouldn't put out such a number. Key question is how fast can we penetrate market once it's launched. My key consideration is that we get in there. This will not be the product we have 2mil revs on. It will get is in the market. Not cornerstone of telecom rev over 5 years. Q: For market entry we have to have unique pricing and show competitors we can compete and be superior. Right? A: Yes. We're convinced it is. Q Time frame for all milestones mentioned? A: Development --- Signal Intelligence and sensor systems, evenly spread over year. Telecom, working on s/w now. Hope to announce it soon. Soon being weeks. Q: What percentage of revenues is goal in telecom? A: In five-year time frame, modest in early stages, but greater than 50% in 2004. Signals Intelligence side will become 25%, and sensors less than 25%. >>>>>>