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Technology Stocks : LHSP: Lernout En Hauspie -- Ignore unavailable to you. Want to Upgrade?

To: cdtejuan who wrote (2258)	8/8/2000 7:34:31 PM
From: A.L. Reagan	Read Replies (2) \| Respond to of 2467

Two cents on a pro-forma either way for this joint is immaterial, IMO. Don't get fooled by some high percentage when pro-forma earnings are near break-even. This John Seo who has now been promoted after working miracles in Korea might make a great fundraiser for Al Gore! Even if we buy 100% LHSP's line on Korea, knee-jerk red flags are: 1. Excessive revenue concentration in one small county. (Look what's happened to QCOM when Korea sales softened). 2. What's to say that the sales base in Korea which has so rapidly materialized mightn't just as rapidly dematerialize. Absent a concrete announcement of a NAK deal with a major wireless infra/handset manufacturer, LHSP stock will go nowhere until these acquisitions are digested. If you listened to the CC carefully, GB guided down numbers for the next quarter. (This was in response to the question re: $770MM projected Y2K total revs, and GB said they would do around $250MM in 4th quarter - do the math and Q3 revs to get to $770 look improbable.) So, not surprising after-market reaction less than thrilling. But weren't we at 29 just a week or so ago. So maybe no big deal. NAK is the killer app, and had a very low profile this CC. GB is quite correct that VR is pretty easy - voice understanding is the hard part. Possibly a long-term arbitrage play is short Nuance and Speechworks, long LHSP. This would be a hedge on the various markets taking longer to develop than thought. ------------------------------------------------- P.S. Is anyone else irritated that these guys don't release a balance sheet until the 10-Q?