To: Judith who wrote (27784 ) 2/11/1998 11:18:00 PM From: Judith Read Replies (10) | Respond to of 41046
I did get to talk to Helen. It was definitely more intellectually stimulating than reading this thread today! For those mature enough to want to discuss the company, the following summarizes my conversation with Helen. 1. Notification of Shareholders Meeting I told Helen I had not received a notification of the shareholders meeting. She explained that FTEL notified the clearing houses, who in turn should notify the brokers for stock held in street name. Therefore, either the clearing house or the broker could be the problem. I am going to call the clearing house tomorrow to see if I can determine the problem. Am I the only one who has not received notification? Has anyone who uses Farsight received the notification? 2. Tempest Sales I expressed to Helen my opinion that we needed to hear some detailed information relating to the sales effort to date. I was interested in the number of evaluations that had been completed, what the results were of the completed ones, how many were currently in progress, and when we might get some news about a signed contract. As I suspected, Helen was unable to disclose information on numbers and customers. However, she did say that of the evaluations completed, none were decisions not to buy. Some identified additional features that they would need to use the Tempest in their environment. Helen said the technical staff was very pleased in the progress they were making in that area. Helen defined other situations which have delayed the actual signing of contracts...uncertainty regarding a company's financial situation, change of management structure, big corporation bureaucracy etc. The problem of companies being able to pay seems to be one factor in their current efforts to concentrate on the Fortune 500 companies. The delay in the delivery of units to Intrine is due to a financial situation at Intrine, which hopefully will be resolve. I realize some can interrupt the above as excuses for lack of sales, and just good PR. I personally have been very skeptical about FTEL's ability to actually close a sale. However, I really did feel that Helen was being very sincere and anyone in sales knows those kinds of situations do happen. Helen said that they have shipped at least 7 DVGs that were bought and paid for by 2 companies. There hasn't been a news release since these were not large orders. There is the potential for one to have a good size follow up order. Helen said they were looking at the status of all the sales efforts and trying to identify some factual sales information, (I think she said some Letters of Intent), that they could announce very soon, possibly by the end of this week. I did not get the impression they were purposely holding back announcing any new contracts for the shareholders meeting. They just didn't want to announce anything that was not a done deal that would definitely be delivered and paid for. I stated to Helen my concern about the limited sales force. She said they would probably be adding on some sales people, but the expectation was that once a few large orders came in from some Fortune 500 companies, other companies would learn about FTEL. 3. WCOM Letter of Intent I asked Helen when we could expect to see a signed contract from the Letter of Intent with WCOM. I also asked the nature of the WCOM collocate arrangement. Right now, the plan is for FTEL to identify 15 - 16 locations for the initial deployment of DVGs. Once that is done, the contract with WCOM will be finalized. The delay in identifying locations is due to the different tariff rules in each state. The terms of the contract, as I understood it, was to place DVGs in WCOM facilities, for which FTEL would pay rent. They would use the WCOM backbone network (which I think they would also have to pay for). Helen said there are separate talks about other possibilities with WCOM. 4. FNET IPO I have previously questioned on this thread the rational for an FNET IPO. I asked Helen what the proposed FNET company would consist of, since they did not own a nationwide backbone network, and how $10 to $20 a share could be justified. Unfortunately, Frank summoned Helen at that point and we were unable to continue the conversation. I will try to speak to her again. In summary,I didn't get any specific information on sales, customers, major new alliances, or dates of announcements, but I did feel more comfortable that some big sales orders could be possible in the short term. I was asked today by someone on SI why I continue to hold my FTEL shares if I have reservations about seeing many signed contracts. In short, my answer was that if I invested my current FTEL money in MSFT, I would realize a gain of about $3000 if it went up 10 points. If FTEL reaches 10 again, I would have an $88,000 profit( I have already taken some profit out). At this point, the reward is definitely worth the risk. It is just the waiting that is hard!!! One further request please...it is nice to know there are people here who love to post known quotes, wine talk, etc. There is the "Off Topic" comment that you can put at the start of your post so the rest of us don't have to read it. I might also suggest you consider having those kinds of discussions in the Franklin Clubhouse! I don't mean to sound like a bitch, but many of us have limited time to read this thread, and would like to spend that time reading about the company. Thanks Judith