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To: Lucrative who wrote (3132)	11/21/1997 2:21:00 PM
From: phoenix	Read Replies (1) \| Respond to of 3977

Could we please move on from this lynch-mob mentality. Inept management and ignorance isn't criminal. The suit and its outcome is old news. That was June. Wake up, its now late November. Third quarter numbers were disappointing. Palermo's "transition year" seems to be stalled. Advanced materials revenues have not increased over the last three quarters. Net losses remain relatively constant at about 3-4 times revenues (ignoring the one-time charges in the 2nd quarter). Victor hasn't contributed jack. Palermo's hope that fourth quarter might be break-even seems extreamly unlikely. The only trend I see from quarter to quarter this year is consistent losses, and no real growth in revenues. I see no trend indicating a transition year. Can anybody offer anything hopeful for this situation, other than $2.5M in backlog? How much of that backlog will be translated into revenue for fourth quarter? Anybody with anything positive to say? Roger