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To: drakes353 who wrote (923)	3/14/1998 12:47:00 PM
From: drakes353	Read Replies (4) \| Respond to of 2506

Hey folks: EA filed their 10K yesterday. Kinda screwy in that they didn't do an earnings press release as well. This usually ain't a good sign. Their earnings release should be out on Monday, before the open I'd bet. Went through the 10K looking for a reason why they might not have wanted to share the earnings news with the world. This might just be it: From Page 5..... "Approximately eighty three percent (83%) of the Company's net sales during the year ended December 31, 1997 were derived from customers which were also customers of the Company during 1996. In 1997, the customers which accounted for more than 10% of the Company's net sales were Advanced Fibre Communications, Inc. ("AFC"), and Dialogic Corporation, which accounted for 35%, and 13% of net sales, respectively. The Company has been successful in 1997 in broadening its customer base, thereby reducing its dependence upon a few large customers. " From Page 33: "The Company has been informed by its largest customer, AFC, that it intends to move the production of most of the components assembled by Tanon to facilities outside of the United States, which have lower labor costs. During 1997, approximately $26.6 million of revenue from that customer was included in the Company's net sales. If AFC is successful in implementing a move offshore, sales to that customer of the product lines currently assembled by Tanon will decrease significantly in the second and third quarter of 1998, and will continue to decrease into 1999." Hmmmm, looks like 35% of total sales are gonna go bu-bye over the next few quarters. It's wonderful that they are signing up new customers left and right but anyone harboring thoughts of sales growth in '98 can probably kiss 'em good bye. I checked the recent S-3, S-3a, proxy and the 9/30 10Q for any reference to this and came up empty. This does look like new information. We'll have to see how forthcoming they are about this little tidbit of information when they put out their earnings release. Wonder how that buyer of 300,000 shares is gonna feel about this? drakes353 PS - Should be no surprise but EA got another "going concern" comment from their auditor. Some companies just need to be put out of their misery.