Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : FNet=Internatl Voice/Fax/Data&Video Services ViaInternet -- Ignore unavailable to you. Want to Upgrade?

To: elk who wrote (213)	5/8/1998 3:54:00 AM
From: george willse	Read Replies (3) \| Respond to of 609

Elk, Andy & All - Elk did an excellent job of answering Pat's questions. I'll just add a little to hopefully clarify: 1. Why no news release for "Best of Show" at the recent CTE '98 in LA? ELK- Good Question, but last time it was sat on until the Magazine was released, and indeed it may be part of the Expo policy or something. The most recent "Best of Show" issue was just released at the end of last week, so maybe we will see something this week. GW- Tom's response is that there may be a release; he did not know why there was not one at this time. 2. When in May is the Baltimore CTI show? ELK - May Ct show is 19-21, in Baltimore. 3. With the Spin-off of FNET, which company gets what portion of $7M in the bank. GW- First, Tom said "spinoff" is a misnomer. FNET is a subsidiary with its own management team. They are didicated to making FNET successful. 4. How many units are out for evaluation? ELK - In Live Chat the other night someone said that there is between 30-50 units currently out for evaluation. GW- Tom said that he had no number. Some were being returned; they will go back to the evaluating customers in the next few weeks after certain requested features were added. Others are still being held on to by other evaluating companies. These will be upgraded with the new features when available and evals will continue. Note that the additional features requested were already on the plate - they just haven't gotten them implemented yet. Furthurmore, Tom said their mix of evaluation companies ranged from small to Fortune 500 companies. Names cannot be mentioned at this time. No large purchases of hardware have been obtained. However, everyone is duly impressed with the voice quality. Speaking of upgrades, Tom said they were all software based. 5. Has deployment begun for FNET network? 6. At what rate are DVG's being deployed? ELK- She won't answer according to a couple of people, instead reffering them to McGruder, who I imagine is not talking either, at this point. There are contracts in place for the actual installation of some or all of the POPs, but there is no word on the timeframe. I'm sure there won't be until a press release is made regarding that topic, since it is definitely news worthy. GW- Deployment has not begun. WorldCom is getting the initial collocation units installed. Estimated time for when the initial units will start generating revenue is late June/early July. The ultimate goal is to have 500 world wide sites populated with FTEL hardware. The real market value is oversees because margins are and will continue to be much higher. 7. Customers wanted special features on DVGs with engineering added/designing features before they purchase. Are these request binding? Do they have to buy if features are added? ELK- I highly doubt that there is anything binding, along those lines. GW- Nothing is binding. The companies have to verify the upgrades and then make their decision. 8. What happened to Intrine's order? ELK- I would imagine Dead in the water. It seems, though this is unconfirmed, that Intrine could not get the funds together and could not fill the financial obligations they made. Unfortunate for FTEL, but not nearly the big deal folks keep making. FTEL rightfully publicized the Intrine sale, at that time no vendor of gateways had a single sale booked for seven figures, so for FTEL to get one that quickly was a coup. The fact that Intrine could not get their act together really is a shame, it would have been some great rev.'s. GW- Intrine failed to meet the requirements of the agreement. The deal is dead. 9. Status of ATT law suit? GW- Tom said the suit would be settled soon. FTEL may have to pay a small sum to AT&T, despite there best efforts to be honest. This is less expensive than paying lawyers. The crux is that two arms of AT&T did not communicate about FTEL's involvement. The AT&T press release did damage because it was printed before FTEL had a chance to respond and clearr their side. 10. NASDAQ listing: How will FTEL (plan) get share price to $5? "a requirement we must meet....." per Tom. GW- Tom and Frank met with Nasdaq officials to discuss listing. Nasdaq objected to the fact that FTEL was below $4.00. Tom & Frank responded that FTEL was above $4.00 when the application was made. Nasdaq then requested more information from FTEL. No reply from Nasdaq yet on status. Meyerson dumping cratered this activity - they will not be getting a Christmas card from me this year!! Finally, in terms of bringing on an investment banker to fund the full deployment of FNET. There will be a dilution of the shares. Whether it is a straight cash deal or cash plus shares, the shareholder equity will be affected. However, as Tom pointed out, when FNET is very succesfull this dilution wil be miniscule compared to the whole picture. Note that different scenarios for financing are being considered; no investment firm names were given. In spite of the lack of financing, FNET is going to start deploying as fast and as many as possible. This will generate not only revenues, but confidence in the company by the bank. FNET IPO may take as long as Q1/99 to occur. Target is still between $10.00-$20.00/share opening price. Underwriters have the say of whether the PP investors can sell some FNET immediately or have to wait up to 1 year. Hopefully the company will get us a good deal on this. Hope I've got all the information down. There was a lot. Goodnight All! -George