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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (9940)	10/25/2001 6:29:35 PM
From: Warpfactor	Respond to of 23153

I don't really know anything about CORV. I remember reading an article in TheStreet.com about a month ago listing likely survivors in this optical space, only about 1/3 of the companies covered were anticipated to survive - JDSU, CIEN, ONIS were projected winners. I don't remember about CORV, I shall try and dig up that article. Given that, CORV has positive money flow and Accumulation is occuring, according to that StockCharts thing that I use. Looks technically like a buy right now. However, I've got my fill of this group with the above three. JDSU's earnings may do some damage to the whole group tomorrow, but the accumulation trends are very strong right now and I suspect the group will continue northward after a few days of slogging around. Regardless of the open on JDSU, et. al., a strong finish tomorrow would portend well for the group in ensuing days. Warp

To: stockman_scott who wrote (9940)	10/25/2001 6:39:43 PM
From: The Ox	Read Replies (3) \| Respond to of 23153

Hi Scott, I just finished listening to the CORV conf call. They are moving forward and have substantially reduced the cash burn. Currently they have $715MM in cash and expect that to drop near $640 at the end of the next QTR. I didn't take notes but I believe they are projecting cash burn around $120MM for next year (so they expect to have about $500MM+/- cash at the end of 2003). They have a huge range for their next quarter estimate for revenues of $15 to $35MM. They are in the process of having a product qualified by Qwest which should be completed in Q4. If they complete the process then they might recognize some of the revenue in Q4, which is why the range is so large. Telefonica and France telecom revenue won't be seen until 1 or 2nd Qtr of 2003 at the earliest. All in all, they seem to be doing fine. No vendor financing but they are letting their customers have extremely long payment terms, some over 90 days if I understood their answers correctly. They did mention that they've already received 40% of the outstanding A/R since the end of the quarter but they were probably referencing "past due" A/R, not what they consider "current". If you own CORV, I think it's going to take patience but I do believe they will be one of the survivors, fwiw.