Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Frank Povoski who wrote (2204)	12/28/1997 4:03:00 PM
From: Ken Muller	Read Replies (1) \| Respond to of 9582

Frank: You wrote<<"The Company's operating activities generated cash of $7.1 million in the first quarter of fiscal 1998>> This operating cash (9/30) was generated by several one-time factors which will not be repeated. I'll list the largest components below: Cash from increase in Accounts Payable - $10.2 million Cash from decrease in Accounts Receivable - $1.6 million Cash from federal tax refund - $14.6 million Cash from increase in inventory - ($4.0 million) These major components total a positive $22.4 million, but the company's operating cash position incresed by only $7.1 million. Therefore, the company used up $14.3 million cash for the quarter. Currently, the last balance sheet statement(9/30) lists their cash position as $19.0 million. They can liquidate some inventory and tighten up a little on their accounts receivable, but that won't buy them much time. They are using $14 million operating cash per quarter to exist. I didn't include the USC contribution because I didn't know if that was distributed to ALSC, deferred or re-invested in the fab. If it was distributed to ALSC then they spent that as well. I have not included any impact of another inventory writedown. BTW, the 90 days is the time period for ALSC to run completely out of cash. Obviously, they will have to do something before then. Ken