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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: TokyoMex who wrote (5732)	11/9/1997 11:56:00 PM
From: Clayleas	Read Replies (1) \| Respond to of 31646

TokyoMex, While the cost on the P/(L) for producing the CD will probably be about $1700 as you have pointed out, I am sure that most of that cost is an amortization of the development cost, which has already been spent. The incremental cash flow to produce the CD, which is what is crucial right now, will probably be on the order of $5 per. When the 1Q results are announced soon, the level of cash will most likely reflect most of the CD development even though there will probably be no bottom line contribution from the CD. The difference between P/(L) and cash flow is crucial when analyzing the company's finances. Please let me know if my explanation is not clear or if I have misunderstood you. Jim

To: TokyoMex who wrote (5732)	11/10/1997 12:00:00 PM
From: Karl Drobnic	Read Replies (3) \| Respond to of 31646

I agree with T-Mex's comments that TPRO needs cash. In addition to the CD's, hiring and training drains cash, and so does bid proposal. If the embedded chip problem is as complex as we believe, preparing bids for the contracts we are all awaiting is also going to be complex. Bid proposal tends to eat a lot of professional time at company expense, even if there is provision to recover bid costs in successful contracts. Getting locked into a poorly conceived contract with a giant manufacturer is the last thing we want at this stage. So I suspect (and hope that) TPRO is spending every dollar in the till. The more TPRO spends now (wisely), the more profit we'll see in the 1998 and 1999 numbers. But there is no time for TPRO to NOT spend at this juncture.