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Technology Stocks : Echelon Corporation (ELON) -- Ignore unavailable to you. Want to Upgrade?

To: John Madarasz who wrote (2954)	2/24/2002 9:50:23 AM
From: Ted The Technician	Read Replies (1) \| Respond to of 3076

ELON has a high cash burn rate. The Sept 2001 10Q cash flow statement shows that cash used in operating activities was $12,589k and cash at the end of the period was $51,319k. At the above cash burn rate, the company will run out of cash in about 4 quarters from Sept 2001. Both revenues and accounts receivable have been climbing - ELON might be providing its customers "vendor financing" or it might be "stuffing the channels." There is a risk that its customers do not pay ELON in a timely manner. The Dec 2001 10Q should shed more light on this.