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Technology Stocks : The Panda Project (PNDA) -- Ignore unavailable to you. Want to Upgrade?

To: Alan Fendrick who wrote (806)	2/3/1998 7:32:00 PM
From: Mike Farmwald	Read Replies (2) \| Respond to of 1521

Panda just had a conference call on the Veridicom deal. You can listen to a replay by dialing 1-800-475-6701 and use the code 376333. (international 1-320-365-3844). My take: Stanford has lost his mind. He refused to discuss finances. They didn't announce earnings - just talked for nearly an hour about the Veridicom deal. They're about to release a new version of Archistrat call "Rock City". It's a scalable personal workstation priced from $995 - $12,000. It's a "lifestyle appliance for GenX" (this is a direct quote from Stanford). This is going to be the really significant product of 1998 for Panda! (according to Stanford). More details on Veridicom: ~1M part order, 60 pin packages (going to 160 pins?). (I'm skeptical that they can even break even at this price.) Not from the conference call, directly from Veridicom: No upfront payments. Panda gets paid for packages after they're delivered and accepted - no delivery, no pay. Lots of discussion about potential customers, but no real details. Stanford was very proud of having a paper accepted on the VSPA MCM accepted at an international conference - in India! They're raised the price of the VSPA/Flex production machines from $750K to $2M. (Editorial: seems strange - they couldn't sell any for $750K but they're going to sell lots for $2M!) Actually, they had to raise the price - the cost of manufacture was more than $750K. Another great quote to a question about whether the Asia problems affect Panda, was that since the Taiwanese can't afford to buy new fabs instead they're going to buy VSPA/Flex production machines!? It appears the LG Cable still hasn't sold any Compass connectors - but real soon now... (You will recall that mass production was to start in May of 1997.) Question was asked about status of 30K unit archistrat government bid (ed: a bid deal was made about this in the last conference call): "We don't know". Question about price of Helix warrents. Some confusing answer about lower of closing price (on what date?) or price of next financing. More interesting: "Helix is very keen on diversifying the stockholder base". Translation: Helix wants somebody else to invest money - they're not interested. Final discussion on how to get VSPA/Flex machines into Taiwan market. Even after buying a machine you still have to pay a royalty to Panda. Panda is considering owning the machines in Taiwan and letting the Taiwanese supply labor, and then pay Panda directly for the packages. This would "conserve capital" for the Taiwanese. (Yeah, but...) If one didn't know better this almost sounds like a company really on a roll - just like every other conference call Stanford has even given. Unfortunately the reality never seems to match the promise. Oh, well, maybe this time is different. Anyway, listen to it yourself and see what you think. Mike