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Technology Stocks : Concurrent Computer (CCUR) -- Ignore unavailable to you. Want to Upgrade?

To: Christiaan McDonald who wrote (3463)	4/28/1998 8:49:00 AM
From: jeffbas	Respond to of 21143

Ken - I read the little guys posts on YAHOO who have sold too early because they do not know what the 5% holders and others do. They are rightfully bitter. If someone wants to be dishonest and unethical and not provide an even distribution of material info they can always find an excuse. Do you really think that a court would find for CCUR if they said "I could tell this large holder something privately, but could not make a public announcement for the reasons you mention". Even if CCUR has told no one anything, CCUR has had an obligation ever since the volume dramatically increased, which is clear evidence that some info has leaked out, to "level the playing field"! Unfortunately, in this country there is much greed and little honor or sense of duty, and it takes lawyers to get people/companies to do what they ought to do on their own.

To: Christiaan McDonald who wrote (3463)	4/29/1998 3:02:00 PM
From: Randolph Gwirtzman	Read Replies (1) \| Respond to of 21143

To the McDonald clan: I've been an off and on follower of this thread for the past two years, and I hold a modest position in the company, which I've recently increased. I must say that I have enjoyed reading your insights about the company. Insults aside, I think this thread is a valuable way for us to leverage our informational base. Since the stock has been on the move in the past few weeks, I dusted off and updated my CCUR model, which reveals some very positive trends for CCUR. First, CCUR's gross margins have been steadily increasing (to 51.2% last quarter). Although EBIT margins (EBIT/Sales)have fluctuated a bit, they seem to be relatively stable over the last four quarters (averaging about 10%). Additionally, CCUR's net cash position has improved significantly since last year (it is now only a 1.45 million deficit). The margins and net cash position tell me that CCUR's reorganization plan has helped stabilize the company. It really comes down to sales, which have declined significantly on a YOY basis during Q1 and Q2. The absence of restructuring charges (1Q actual had what appears to be a $607,000 reversal) have helped YOY EPS comparisons. However, the sales decreases are the primary blemish on this company. The continuing stream of announced RT orders tells me that the company will have steady revenues from RT (but probably nothing spectacular), so the VOD is pretty crucial (obviously). I do however, have a question regarding one of the RT contracts (with the U.S. Navy, announced on 11/18/97). The announcement said that 5 PowerMaxions were purchased for $2 million to serve as Aegis Cruiser testing and development beds. The announcement also stated that in the future, each of the 57 Aegis Cruisers in the current program will use 4 CCUR systems. It also stated that there was a potential to triple this amount over the next 5 years. At the contract price (assuming 4 PowerMaxions per ship), this would generate about $90 million in revenue, not counting the "tripling" effect. Does anyone know what the status of this order is, and what systems/pricing might be contained therein? A contract of this size (without tripling) would generate around 0.27 to 0.28 in diluted EPS under current margins (over 3X last years' annual EPS). Thanks in advance for your help. Randy.