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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Kurthend who wrote (9562)	5/16/2001 8:49:09 AM
From: John Madarasz	Respond to of 10081

Thank you for that. Regards

To: Kurthend who wrote (9562)	5/16/2001 9:52:45 AM
From: MattB	Respond to of 10081

Thanks for the information and commentary. One day we will dance.

To: Kurthend who wrote (9562)	5/16/2001 10:39:19 AM
From: Rangle	Respond to of 10081

Thanks Kurt

To: Kurthend who wrote (9562)	5/16/2001 5:31:26 PM
From: equityanalyst	Read Replies (1) \| Respond to of 10081

Kurt, thanks for the thorough recap of the 10-Q . . . you pretty much captured the essence of it. Given the full-disclosure nature of these documents and the SEC’s obligatory investor warnings (the "buyer beware" notifications that you referenced), as well as some of the obvious company-specific concerns, it's not surprising that the tone of the filing is quite somber, similar to GMGC's previous filings and those of many other yet-to-reach-profitability companies. I'd often worried that I was in a kind of investment time-warp with regard to GMGC (with various current developments/announcements conjuring up flashbacks and images from past events, some good, some bad), but now I know it's true: Did ya notice the dates at the bottom of the filing next to the signatures of Kathie and Rose? Both are dated May 15, 2000 (wish it was that date . . . stock'd be much higher!). Gee, I guess even legal-beagle proofreaders make mistakes every once in a while ;-) Regarding your point #6: Looks like they saved themselves some considerable cash outlays by working out the agreement with SM to take the option for the 685,000 shares of stock in lieu of additional cash payments due under his employment agreement. This is in addition to his already owned/optioned stake in the company of 1.3 million shares, so he now stands to profit handsomely (if the stock does well). A win-win for both sides (if the stock does well). From the Definitive Proxy Statement: nasdaq.com Related to points #7, #11 and #15, another aspect of the 10-Q filing that I find interesting (reading between the lines) is the company’s stated strategy – among other things – to "establish and maintain relationships with businesses with high volume customer interactions; establish and maintain alliances with companies that offer technology solutions for businesses with high volume customer interactions . . ." When you combine that statement with 1) "The Virtual Advisor represents the largest commercial deployment of a VoiceXML voice application to date"; 2) Huber's earlier comment that "We selected General Magic Inc., because they could build and deploy a solution quickly and scale that solution alongside our rapidly expanding subscriber base"; and 3) the company's growing attention to an internally generated sales effort, in addition to their alliances with NUAN, SPWX and ASKJ, then it's not difficult to put this mosaic together and come up with the conclusion that the company is indeed going after some major new customers/alliances, beyond OnStar, that offer significant future revenue potential. I'm hopeful that something along these lines will be announced in the months ahead (over and above whatever news we get re IBM). The questions remain, of course, who and when? Okay, so maybe I'm reading too much between the lines. Personal Full-Disclosure Statement: I've been wrong trying to predict this stuff (many times) before. Regarding point #9, that's good news . . . would hate to see R&D dwindle much further, despite the need to cut costs. The other related good news is the dramatic reduction in SG&A expenses . . . they've done a great job in this area. Thanks again for your timely/helpful summary. ea