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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (572)	3/5/1998 8:10:00 PM
From: jeffbas	Read Replies (2) \| Respond to of 1250

Thank you Paul for doing the due diligence that I failed to do, and reminding me of that trap. Unfortunately, you also remind me, painfully I must admit, that I used to compare ACTM favorably with FLEXF, because at the time it did have a better growth and earnings record and a much better balance sheet :-( A bit of expensively earned wisdom that I have learned over and over again in technology - the company with the better products and/or strategy when combined with good mgmt will succeed over the company less endowed, despite what traditional valuation measures would suggest. VTSS had great products, but a poor track record and balance sheet. FLEXF had the correct strategy and good mgmt to implement it, but a mediocre track record and balance sheet. ACTM had the right strategy for a time - soak up all the business in your region - but neither the vision or mgmt to go to the next level with the market.

To: kolo55 who wrote (572)	3/6/1998 11:07:00 AM
From: kolo55	Read Replies (1) \| Respond to of 1250

I guess I'll try and answer my own question. My previous comments: I'm having a difficult time reconciling the statements made in the 10Q with the balance sheet info. It looks to me like the company has 36.8M + 9.7M = 46.5M in debt but only shows $37.6M on the balance sheet. Anyone have an explanation ? The $9.7M is an equipment lease agreement where ACT doesn't own the equipment and is simply paying a lease payment. At the conclusion of the lease, ACT probably has an option to buy the equipment(at a reduced price from original cost). The value of the equipment doesn't show up in the Plant and Equipment line on the balance sheet, and therefore there shouldn't be a corresponding liability shown on the balance sheet. However ACT does have to report the lease agreement in the 10Q because it is a significant financial commitment. As for listing a revolving credit line as 'Long Term Debt', I guess it depends on the terms of the credit line. After going over and over the available financials, I can't really see anything unusual from the info we have access to. I'm trying to keep an unbiased mind so that I can make good decisions, especially with all the rumors floating around. One thing though; this had better be resolved in time to issue the year end report by the end of March, and stay in compliance with SEC regs, or else... Paul