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Technology Stocks : Acrodyne (ACRO) is one of two pure plays in the TV -- Ignore unavailable to you. Want to Upgrade?

To: Eric Hautala who wrote (873)	1/3/1998 1:25:00 PM
From: Robert Florin	Respond to of 1319

Itelco also developing a Diacrode HP transmitter. Right, ACRO needs to watch their competition, however, I believe that any new transmitter technology for a company must be submitted for approval to the FCC which, as I understand it, can be about two years from design to license. I am not sure where Itelco is in this process. BTW, I believe that an Acro sale to China awhile back was in a head to head competition with Itelco. I thought that Itelco was a bigger presence in the international market than they are here. This sale to HI is domestic. It looks like an IOT. I was hoping that Itelco would remain more international. Disappointing that ACRO hasn't been able to convince the purchasers of marginal sellers in the US like Itelco to go with their diacrode. I wonder if it has something to do with turnkey offerings or, another problem, the cost of offering onsite engineering and support to an HI company. Accessability is restricted. I bet that Comark, Harris and Itelco may be willing to take a bath on the actual costs of doing business now, just to penetrate the market in a slow sales environment. I wonder what their transmitter divisions are really showing. (I think I will go over to the Harris 10q and STM 10q and see what I can discover.) This probably accounts for some decreased gross margins for ACRO over the last year. Perhaps the size and capitalization structure of Acro does not allow it to absorb the losses that are entailed in giving great deals to early adopters of DTV. I am not sure this is necessarily a bad situation given what seems like it will be a premium market in a very short period of time. I can't actually believe that companies act like individuals, put off the purchase until the last minute and then rush around at a much greater expense to get in under the deadline. It is the overnight FED-Ex mentality. Overnight last second Fed-Ex costs $10+. Simple priority mail is $3 with a little more planning ahead and if you actually can think a week in advance, it only costs $.32!!!! Looks like some of those early adopters are getting the $.32 price. Look for the remainder to pay up with big premiums for equipment. Here's where ACRO stands to make big $$$$, and big margins. One of my big concerns still remains, - whether they have enough capital to hold out without a significant further dilution, and whether they will have enough left over for operations, performance bonds, etc. I was wondering about your comment on the antenna designation in the application. Apparently the Harris designation applies only to Harris equipment. I was unclear about the General Signal designation. It looks like they are antenna manufacuters and turnkey packagers, but I didn't see reference to their own HP transmitter manufacture and sales. When you see the General Signal designation, with whose transmitter is that usually associated? Also, do you know which antenna manufacturer usually goes with ACRO equip? Andrew? Bob