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Technology Stocks : COM21 (CMTO) -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (2227)	7/21/2000 9:44:38 AM
From: rod runyan	Read Replies (1) \| Respond to of 2347

I agree. I suspect margin pressure is the main culprit. Perhaps an assist from revenue, but it has been known for some time that revenue would probably be capped right around 51-52 mm. Boy this is ugly. rod P.S. I haven't had a chance to listen to the CC yet.

To: Madharry who wrote (2227)	7/21/2000 4:12:48 PM
From: DukeCrow	Read Replies (1) \| Respond to of 2347

It looks like a lot of the news agencies are reporting that there was disappointment that Com21 didn't post the same sequential revenue growth that Terayon did. This is ridiculous. A lot of Terayon's revenue growth was through acquisitions, not internal. The real worry I have is that Com21's gross margins appear to declining, while Terayon's are rising. I guess this is because Terayon is selling more proprietary modems and headends which keeps margins higher. Com21 is focusing on DOCSIS which right now is mainly just rebadged OEM gear. Also, Com21 isn't selling as many headends because Cisco owns the DOCSIS headend market. I'm going to listen to the CC tonight to evaluate whether or not this is going to turnaround. If gross margins keep getting squeezed, profitability is going to be pushed further and further out. One question, does anyone know whether the DOXport 121 (the recently DOCSIS-certified modem) is made by Com21 or is OEM'd? My guess would be OEM since Terayon announced DOCSIS certification of a USB modem, also. What's the point in investing in Com21 if they're just going to OEM another company's modems? I know there are exciting things coming down the pipeline (in regards to telephony and wireless), but when can we reasonably expect these products to start contributing meaningfully to the top and bottom lines? Maybe Mark will be able to answer my product concerns. Pat, what are your thoughts on this quarter's earnings? Thanks for any help. Ali