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Technology Stocks : Aviat Networks -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (30)	5/1/2007 6:56:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 312

Ox, Thanks for your excellent posts. I listened to the call but had a hard time focussing (due to other distractions here at work). My general impression was luke-warm. On the one hand, it was only a 2-month "quarter" which provides a very short time in which to address merger issues... this would lead me ot cut them some slack. On the other hand, they've been preparing for the merger for longer than 2 months. The analysts asked some good tough questions; their tone seemed to question whether everything is truly copacetic, as management would have us believe. I would guess that the share price is in for a somewhat rocky/lackluster time until the next quarterly conference call. At that time, we will see more clearly whether these merger issues are temporary (as claimed) and whether or not management can execute well. They did rattle off a fairly impressive list of accomplishments for only 2 months and seemed to suffer from a few unexpected employee departures which were probably related to organizational changes (and so should not be repeated). One detail I heard on the call was that a lot of the projected merger-related savings are expected to be realized in the 2nd half of FY08 (Jan-Jun of CY08). These savings are supply-chain related and should eventually show up in the form improved gross margins. It will be interesting to see how the market reacts. My guess is that those who are already long HSTX will not be looking to sell (unless they see this as temporary dead money)... but few investors will feel an urgent need to buy HSTX either. Long-term outlook seems good, but there should be plenty of good buying opportunities in the next 3 months so there seems to be no reason to hurry. If all this seems wishy-washy... its because that is just how I feel. Rob