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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (4521)	1/23/1998 3:26:00 AM
From: craig crawford	Respond to of 10479

Someone explain this to me. You guys are the one who do all the hard research on this company. I'm not good at accounting stuff so if anyone wants to clarify please do. ~~~~~~~~~~~~~~~ The number of shares issuable upon the exercise of dilutive options and warrants was reduced by the assumed repurchase, at the average market price during the period, with the proceeds assumed to have been received on the exercise of these securities in accordance with the mandated treasury stock method. ~~~~~~~~~~~~~~~ Assumed repurchase? So FIBR can get around any dilution from warrants, conversions, options, etc by just mentioning a repurchase? Show me the money Osicon, show me the repurchase. No one still has explained to me where FIBR is going to get the cash to pay for this "buyback". As of October 31, 1997 FIBR only had $3.4 million in cash and equivalents and it says that $2.1 miilion of that cash is restricted. Unless that restriction has been lifted that leaves FIBR with $1.2 million to work with. Of course this company might be getting cash flow from financing because they certainly aren't getting it from their operations. Can somebody explain to me why a company would want to do several placements to raise cash (increasing the shares outstanding when they are converted) and then turn around and use the cash to buy back shares? Kind of seems backwards to me. Issue more shares (preferred and other) to get cash, to buy them back, and take them right back out of the float by repurchasing them. Huh???? Let's just stop beating around the bush and say that this is completely illogical. Of course FIBR will probably buy back some sharers just to make it look good but it will be interesting to see just how many are repurchased and then how many of those shares get passed right back around and redistributed.

To: craig crawford who wrote (4521)	1/23/1998 3:52:00 AM
From: craig crawford	Read Replies (2) \| Respond to of 10479

Can someone please explain to me why FIBR's G&A expenses (General & Administrative) increased from $2 million to $4.9 million last Q yet their sales decreased by 30% year over year? I noticed their Engineering, R&D expenses decreased a bit. Total operating expenses increased 32% yet sales declined 30%. Operating expenses as a percent of sales were 50% in the MRQ compared to 26% in the year ago period so the expenses shot up in real dollars and as a percentage. What are they doing? Throwing office parties every week? Of course in fitting with the Osicon heritage FIBR decreased investment income and increased interest expense. There are another $400,000 in "other charges" (doesn't say what they are) which of course doubled from the prior year. Weighted avg. common shares outstanding was listed at 16.348 million but that is just an average during the quarter. The real total at the end of the quarter as listed by the company in the 10Q was 18.843014 million shares. That is a difference of 2.5 million shares or 15%. I'm not going to look it up but if you consider that more than likely shares increased as the quarter went on you can extrapolate that shares outstanding at the beginning of the quarter were less than the average so shares probably increased by over 3 million from beginning to end. Anyone want to take a guess as to how many shares will be outstanding at the end of Jan 31? 20 million? 22? More? Be sure to look in the next 10Q at the shares at the end of the quarter, not the avg during the quarter. This will give you a better forward look at how many there will be for the next earnings report. This clarification isn't really very necessary for companies that don't increase the shares outstanding too much, but when you have a company that dilutes shareholder value by adding a few million shares or more each quarter it is very important.