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Technology Stocks : Fonix:Voice Recognition Product (FONX) -- Ignore unavailable to you. Want to Upgrade?

To: ed doell who wrote (1370)	11/19/1997 7:47:00 PM
From: john harris	Respond to of 3347

ed: The following was on the Dow Jones Newswire late this morning. interactive.wsj.com@4.cgi?invstmnt/text/autowire/data/BT-CO-19971119-003029.djml/&NVP=&template=news-search.tmpl&form=news-search.html&dbname=wsjie%2Findex&dbname=autowire%2Findex&words=fonix&any-all=AND&maxitems=30&HI=6 Fonix Shrs Slip Further Despite Siemens Pact By JANET MORRISSEY AP-Dow Jones News Service NEW YORK -- Next year will be 'our transition year when we move from a development stage company to a commercial firm,' proclaimed Fonix Corp.'s (FONX) executive vice president of strategic development, Roger Dudley, after the company secured a partnership with a unit of German electronics giant Siemens AG. But market watchers appeared less convinced. Since Monday's announcement, the stock has tumbled 16.1% from Friday's closing price of 7 despite an intraday spurt on Monday. It was recently trading at 5 7/8, down 1/4, or 4.1%. Over the past year, the Salt Lake City-based company has been dogged by skeptical market watchers who questioned the existence of its much-touted automatic voice recognition technology, its financial projections and 'unusual'loans they said it made to companies outside the sector. Analysts, who did not wish to be identified, from at least three different firms complained they had trouble following the company because it failed to show up at trade shows and would not demonstrate its technology. 'The technology seems to be forever under development,' jested one analyst. Despite the partnership venture with Siemens, they said they weren't surprised by the stock's decline because reluctant investors need to see actual dollars on the company's balance sheet before being swayed. Fueling the doubts was the company's failure to achieve its goals of marketing its technology in early 1997 and posting its first revenue in the second quarter. Instead, its loss for that quarter tripled to $3.9 million, or 9 cents a share. But Dudley wants to set the record straight and put to bed perceptions that have plagued the company.The executive vice president said the strategic alliance with Siemens'validates our technology.'Would a company like Siemens sign an agreement if the technology wasn't there?' he asked rhetorically. While Dudley conceded the technology has been in development since 1993, he said all components are now complete and ready for integration into Siemens' telecommunications products. He dismissed suggestions the company has never demonstrated the product, saying an earlier prototype of the technology was showcased in Zurich, Berlin, Toronto and New York in September 1996 to verify 'proof of concept.' At that time, there were still 'a few bugs and refinements,' which he said were ironed out by June and demonstrated to more than 300 shareholders. Since then, the executive said, the company has been selectively seeking out strategic partners.

To: ed doell who wrote (1370)	11/19/1997 8:24:00 PM
From: john harris	Read Replies (1) \| Respond to of 3347

and more from that DJ Newswire story (heads up to Randall on the loan reference and to franco and Bob on the time frame for the technology integration)................ <<The executive vice president added that discussions are currently under way with other "major companies in noncompeting fields" for further alliances. Joe Kaeser, chief financial officer of Siemens Semiconductor's microelectronics unit, was somewhat tight-lipped about the alliance, citing the nondisclosure terms of the pact. "What we have seen and heard (about the technology) has led us to believe the two companies can work together," said Kaeser, although he would not disclose whether he had personally seen the technology fully demonstrated. He brushed off market concerns. "Nothing is guaranteed in life," he said. "There is always some risk, but we believe this was a good deal to make. We think there's a good chance it will improve our presence in this fast-growing market." However, he said profits could be some time away, as he estimates it will take 18 to 24 months after the technology is integrated before the companies realize gains from the alliance. Meanwhile, Dudley sought to clarify rumors about Fonix's "unusual loans." In 1996, he said, the company made loans ranging from 30 days to six months to about a half dozen companies as part of its "cash management" strategy to boost yield. He said the loans accrued interest of 20% to 26%. The executive said the loan that generated the greatest controversy was to KLS Enviro Services Inc. (KLSE). Market watchers mistakenly believed Fonix loaned KLS money because several of its directors had equity interests in the drilling services company at the time, he said. However, he noted, they purchased those stakes after the loan was repaid, not before.>> -Janet Morrissey 201-938-5400

To: ed doell who wrote (1370)	11/20/1997 11:28:00 PM
From: ed doell	Read Replies (1) \| Respond to of 3347

fonix (FONX): For the trading day of 11/20/97: Last trade 5 11/16.... Net change for the day:... - 3/8 closing bid: 5 11/16.... ask: 5 3/4 Volume...278,400 Day Low: 5 5/8.... Day High: 6 1/16 Best wishes, and good luck to everyone on Friday. Apologies for the late posting of this today. Ed fonix web site: fonix.com Equity funding announcement 10/28/97: biz.yahoo.com 8-K filing related to funding announcement: edgar-online.com fonix/Siemens announcement 11/17/97: biz.yahoo.com