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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (16700)	4/18/2001 1:35:35 AM
From: Softechie	Read Replies (2) \| Respond to of 37746

For all SCMR holders...beware...here's why: From their 10-Q: We currently have a limited number of customers, one of whom, Williams Communications, has accounted for a majority of our revenues to date. Due to the diversification of our customer base and the substantial performance of our current contract with Williams Communications, sales to Williams may decline in absolute dollars and may decline as a percentage of our revenues. In the second quarter of fiscal 2001, two other customers each accounted for over 10% of our revenues. None of these customers is contractually committed to purchase any minimum quantities of products from us. We expect that in the foreseeable future a majority of our revenues will continue to depend on sales of our intelligent optical networking products to a limited number of customers. The rate at which our current and prospective customers purchase products from us will depend, in part, on their success in selling communications services based on these products to their own customers. Any failure of current or prospective customers to purchase products from us for any reason, including any determination not to install our products in their networks or a downturn in their business, would seriously harm our financial condition or results of operations. From their 10K: During fiscal years 2000 and 1999, shipments of products to one customer, Williams Communications, Inc. accounted for 92% and 100% of our revenues, respectively. Our other customers include: 360networks inc., Enron Broadband Services, Global NAPS, Inc., LDComm Networks, Utfors AB and Storm Communications.