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Non-Tech : Amati investors -- Ignore unavailable to you. Want to Upgrade?

To: bill c. who wrote (29474)	11/30/1997 12:01:00 AM
From: pat mudge	Read Replies (3) \| Respond to of 31386

[Westell] <<<Westell has ~$60Million in cash +300million shelf, with a burn rate of ~5million/quarter. >>> I'm referring to the costs of seeding the market at a loss if the telcos delay further. $60M will be gone in a heartbeat. As for the shelf registration, isn't that for acquisitions? If not, then you may be right when you say it will pay the bills till profitable contracts come in. <<<2 out of the 3 GTE divisions and Bell Atlantic have long term contracts with Westell.>>> I know of the government contract and one for an apartment complex in Marina del Rey. Are these what you mean? As for BA, isn't that through DSC? <<<They will have a MOT and TI DMT solution, and presently have a CAP and AMTX DMT solution.>>> MOT is held up, some say it won't be out till mid-'98 at the earliest. Have they signed a DMT contract with TI? I understand they've been offered the Allegro with the LSI solution. If they get a TI/DMT solution --- and I hope they do --- they'll have to put something around it. Again, this takes time. <<< They have partnerships with Lucent, DSC, Nortel and Fujitsu on the equipment side.>>> Again, these will be lucrative once they begin. When does the starting gun go off? <<<< Westell will acquire IP in layers 2 and 3.>>> When? <<< 1 month ago you were under the impression that AMTX could weather the storm, with no cash. Why isn't Westell strong enough to weather the storm with long term contracts in hand and $60million in cash?.. until later.>>> I was never under the impression Amati could weather the storm without cash. I knew they were seeking possible sources and that they would either get an equity partner or merge. Westell may be strong enough to survive, but I'm sceptical enough to wonder how anyone can make it without huge backing IF the telcos continue to delay. As you know, I believe in the technology. I believe there will be many winners. BUT, the clock is ticking and only the strong will survive. Amati had all the technology in the world they needed, and some impressive contracts, but without the cheaper chips and without serious deployment, they simply didn't have enough cash to hold on without help. Westell does not have technology and their contracts are no more lucrative than Amati's were. Will their $60M and $300M shelf registration buy them the time they need? If I believed they would, I'd be buying the stock with both hands. Just my take. Cheers! Pat