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Technology Stocks : YURI ( YURI SYSTEM ) -- Ignore unavailable to you. Want to Upgrade?

To: Miles Rhyne Hoffman, CFA who wrote (414)	2/6/1998 12:58:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 1181

The Company's consolidated revenue for the fourth quarter, including the consolidation of Data Labs, was $17.6 million, representing a 168% increase over the $6.6 million for the fourth quarter of 1996 and a 25% sequential increase over the $14.1 million for the third quarter of 1997. Perhaps I mistated... My point was 25% increase from Q3 to Q4. This is not strong... You can multiply all you want and try to extrapolate to 100% annually, but a company this size should be showing a much higher rate of market penetration. The ATM CPE Market segment is the fastest growing market segment in the networking industry. Growing at near 80% according to Vertical Systems. If you look at YURI's numbers their penetration into this market is decreasing.... 168% Q4 96 to Q97, and extrapolating Q3 97 to Q4 97 - 100%. This decreasing growth tells me that they are still picking up market share - but at a decreasing rate. Add to this that over 30% of their business is coming from 1 customer coupled with new products from that behemoth CISCO and it doesn't look good going forward. POints. Decreasing growth Rates Overleveraged with one account New Products from stronger competitors = Reduced market share, thinner margins, etc.. etc.. Gary