Craig
I spent the AM researching FIBR financials. Let me see if I have this straight? Folks on this thread think this stock is a good long term play in networking (Wireless and wired, they can't decide which area they want to focus all their energy on I guess?)
Yet in the last 10Q they list as primary competitors:
"The Company's key remote access competitors include Adtran, Motorola-UDS, ADC Kentrox, Sync Research, Digital Link, Ascend, 3Com, Bay Networks, Proteon, ACC, Motorola and many others. Key network adapter competitors include 3Com, Interphase, Network Peripherals, Adaptec, SysKonnect and SDL. Key hubs and switches competitors include 3Com, Cisco Systems, Intel, Bay Networks and many others.
In the multifunction server market, the key competitor is Hewlett Packard, which is dominant, while other major players include Intel, ESI, Axis and Emulex.
The Company's broadband connectivity products are competitive with the products offered by numerous other companies, including Cienna, Scientific Atlanta, Tektronics and Phillips.
The Company believes it has no direct competitors for its NCC chip at this time.Primary competitors in the wireless technology markets in which the Company intends to increase its presence include Motorola, Tellabs, Qualcomm, Texas Instruments and Interdigital.
In addition to those firms specifically named, the Company faces increasing competition from numerous other firms. "
I guess they plan to leverage their strong balance sheet:
"LIQUIDITY AND CAPITAL RESOURCES
At October 31, 1997, the Company had net worth of $41.3 million, with total assets of $83.2 million. Of these assets, current assets totaled $44.8 million including $3.4 million of cash and cash equivalents, $16.1 million of accounts receivable and $21.2 million of inventory. The Company's working capital at October 31, 1997 was $6.7 million.
The Company's operations provided a cash flow of $344,000 during the nine months ended October 31, 1997, as compared an operating cash flow deficit of $990,000 during the nine months ended October 31, 1996. This increase in net operating cash flow is reflective of the net cash outflow from operations after adjustment for non-cash income and expense of $5.6 million reduced by the net decline in current assets and increase in current liabilities during the nine months ended October 31, 1997. During the nine months ended October 31, 1996 net cash outflow from operations after adjustment for non-cash income and expense was $500,000."
Combined with their massive R&D effort:
"Engineering, research and development expenses totaled $1.9 million, or 8.3% ofnet sales for the quarter ended October 31, 1997. This compares to $2.3 million,or 6.9% of net sales for the quarter ended October 31, 1996. For the nine months ended October 31, 1997 engineering, research and development expenses totaled $5.3 million, or 6.0% of net sales as compared to $5.1 million, or 6.4% of net
sales for the nine months ended October 31, 1996. The increase in these expenses as a percentage of net sales during the quarter ended October 31, 1997 reflects the reduced net sales during the period."
Sounds like a good strategic plan to me!! Not
Anyone that buys this stock, sell them anything on credit or has their retirement dreams tied up in this company are fools.
Just my opinion.
Regards
Stewart V. Nelson |
