To: D LEE who wrote (12827 ) 4/19/1998 9:40:00 AM From: PHarris Read Replies (1) | Respond to of 27968
ATXI: I just reread their financials because they are boasting about a sales increase for the month of March. (One month increase is a ludicrous thing to base your future earnings on). I read: 3rd fiscal quarter ending March 31,1998: loss of $31,965 or .02 a share compared to earnings of $72,257 or 0.05 per share same period a year ago. For the 9 months ending March 31st,1998: loss of $153,900 or 0.11 per share compared to earnings of $123,579 or 0.09 per share.Net sales were 1.1 million compared to 1.6 million a year ago. For the first 9 months of fiscal year, net sales totalled 3.1 million compared to 4.4 million a year ago. They say the decline results from the loss of sales from Avnet,which is currently trading at 60 3/8 and is a billion dollar conmpany. I found this article on their troubles: ATRIX INTERNATIONAL FILES SUIT AGAINST AVNET Company Seeks Damages Arising From Breach of Contract MINNEAPOLIS (December 29, 1997)--Atrix International, Inc. (NASDAQ-ATXI) announced today that it has filed suit against Avnet Inc., Great neck, NY, alleging breach of contract, fraud and breach of the covenant of good faith and fair dealing. The suit arised from an agreement that Atrix and Avnet entered into August of 1996. That contract appointed Atrix a "focused supplier" for various products that were specifically identified, and that Avnet, in turn, would resell to Lucent Technologies, Inc. Atrix agreed to provide the products at certain specified prices and Avnet agreed that it would only purchase such products from Atrix. The contract specified that either party could terminate the agreement with 30 days written notice. On or about November 17, 1997, Atrix was orally advised that Avnet had made the decision to deal directly with Atrix's suppliers. Subsequently, Atrix has information suggesting that Avnet had been contacting Atrix suppliers about purchasing direct since at least July of 1997. To date, Atrix has not been provided any written notice by Avnet about its intention to terminate the June 1996 agreement. Atrix alleges that it has been denied the income it would have been entitled to, since at least July of 1997 and that currently it has inventory, whose sole customer was Avnet, as was purchased pursuant to the agreement. In addition, Atrix is requesting cost, attorney's fees and lost opportunity cost as a result of the efforts senior management had to expend relating to the issue. Total damages requested by Atrix is in excess of $350,000. Atrix is a leading edge manufacturer of remote metering and copy control products. The Company also manufactures toner and asbestos vacuums, vacuum filters and printed circuit board transport cases for the office machine industry, and distributes tools and instrumentation for field service organizations throughout the world. The common stock of Atrix is traded on NASDAQ under the symbol ATXI. For More Information Contact: Atrix International, Inc. 14301 Ewing Ave. S. Burnsville, MN 55306 Tel: 800-222-6154 FAX: 612-894-6256 c1997 Atrix International, Inc. All Rights Reserved. Some icons on this page are Copyrights of Sausage Software. So, they are fighting a giant for $350,000? And $350,000 still doesn't account for their total losses. Does the FAMHily want to get involved in this lawsuit? Question: In rereading Atrix financials,concerning FAMH/Atrix LOI, it said: "whereby outstanding shares of Firamada would be exchanged for NEWLY issued shared of Atrix". Does this mean dilution of Atrix shares and how would that fare for exchange ratio? TIA Priscilla