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Technology Stocks : BOSA(Boston Acoustics) -- Ignore unavailable to you. Want to Upgrade?

To: JP who wrote (6)	1/17/1998 12:35:00 AM
From: puzzlecraft	Respond to of 34

JP, Gateway bought 100,000 shares of BOSA, this would indicate more than a "see you later BOSA" relationship. From the most recent 10K: In January 1997, the Company reached a preliminary agreement, which was finalized in May 1997, to supply the Company's MicroMedia (tm) speaker systems to Gateway 2000, Inc. ("Gateway")... The Company has received initial orders from Gateway pursuant to the contract, and the Company expects to receive, under the minimum purchase terms of the contract, substantial additional orders from Gateway. Since the contract does not contain a schedule with which Gateway must comply in placing orders, orders by Gateway may fluctuate significantly from quarter to quarter over the term of the contract. Assuming Gateway places orders in the quantity required under the contract by March 1998, a substantial portion of the Company's revenues for the current fiscal year is expected to be derived from its contract with Gateway. The terms of the contract with Gateway call for a limited period of exclusivity for OEM sales to other computer manufacturers but do not affect the Company's traditional channels of distribution for these or any of the Company's other products. Website at www3.bostonacoustics.com John

To: JP who wrote (6)	1/20/1998 3:16:00 PM
From: Rob S.	Respond to of 34

That is the $20,000 question. She said that they have hopes for receiving the renewal contract but was up front that this was not a sure thing. She also said that they are working hard to get additional customers and to introduce new products. We are already seeing the results of these efforts. She said that if they lose the Gateway business that they will still be on a long-term growth curve that will look favorable compared to last year. I think that Gateway gets a lot of play out of BOSA's good reputation. They will probably try to negotiate hard on prices because the product has moved to higher volumes but there should be good reasons to renew the contract with BOSA. The company should have an upward bias as the fears of Asia and market doldrums subside. They have little sales to Asian and get some benefit from sourcing of components that are now ~40% cheaper.