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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (37806)	7/25/2002 2:57:37 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67861

TELM CC July 24,,2002 -Seeing slow down domestic and overseas. -did not close a new carrier customer as expected in q -40 percent of work force let go in q -some areas of R+D ahead of market so discontinued programs - cash 206 mil at the end of June 30,2002. 2.7 mil less than last Q - no debt except 9 mil line of credit Financials: Rev 3.1 mil vers 34 mil y-y and 54 mil q-q Customers in Q, Qwest (Q), Dynery (DYN) and Lougheed Martin GM loss of 19 mil vers positive 12 mil y-y, due to 17 mil inventory charge Op Ex: loss of 42.2 mil vers loss of 15.2 mil y-y EPS loss of 41 mil vers 14 mil y-y took 166.7 mil non-cash write down in the Q due to deferred warrants and goodwill write offs inventory down 19.9 mil from 40.4 mil in Q, most of that isdue to the 17 mil write off good will write off 54.8 mil, all written off in June Q, due to acquisition 54.7 mil in intangible write offs in q 1.7 mil in intangible write offs left for following Q's write off 28.8 mil due to equity issuances (Q + DYN), 29.5 mil left to write off Cash at end of q 206 mil down 2.7 mil, guidance was for 5.9 mil burn AR down to 4.1 mil, vers 48.4 mil last Q [Harry: Essentially collect from all outstanding orders. Does not sound like they have any new orders confirmed. Zero rev next Q?] Guidance: No rev guidance GM depends on Rev Op Ex will decline q-q, down 5 to 7 mil not including 13 mil charge next q for re-structuring Int Income flat to this q no tax charges due to tax loss charge forward cash burn will be 25 to 30 mil, 15 to 17 after next q Q) Any plans for acquistions? A) No comment right now. Will stay away from WDM. It is a commodity business. We have been there. Expect organic growth from existing products. Will acquire as opportunities arise. Q: cash burn from operatins next Q A: not significant Q: Were rev most maintanence orders A: Qwest rev was mostly software upgrades, Lougheed was a new customer. No line card rev in Q fro Q+DYN Q: Headcount A: 335, 2/3 engineers Q: NEC partnership with their product release later in Q3? A: yes Q: Any new partnerships? A: Yes. no new details q: Areas of partnerships? a: 10 gig transponder compatibility q: debt? a: 9 mil line of credit q: market cap 68 mil, cash 206 mil? a: yes q: Any help from weaker dollar? a: using it as a sales tactic in Europe, proposing dollar denomiated deals q: new trials? Intl sales opportunities? a: foggy outlook at best. Some trials finished. say they will buy in 6 to 9 months. will believe when we see the order, some trials on going, q: Q+DYN business the rest of the year a: expect rev from both, no ideas when or how much. like most carriers they are conserving cash, no idea on capacity utilization q: Competitive landscape a; only LU and TELM left, have dropped MEM's develop as an all optical switch is years away based on demand, q: seen CORV in RFP's a: no q: cap ex in Q a: single digits [Harry: This is a company that is in real trouble in terms of seeing sales, let alone sales growth. It looks like they are planning for zero rev in the next few q's. Trading way below cash though. ]