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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: dfloydr who wrote (1500)	5/25/1998 4:05:00 PM
From: michael c. dodge	Read Replies (1) \| Respond to of 3247

Yo...Floyd, Rick, et al......Siliscape has patent(s) applied for on addressing algorithyms for the microdisplay. Maybe Nat Semi on the chips ??? I have reason to believe products will be announced this year for both apps (projection and virtual image). This technology is finding places in the market. There are now about 10 competitors working on this technology......which is critical for its adoption and progress, the way this industry is set up. The 10Q is worth reading. Going to need at least $30M by year end, to cover China plant and related working capital, LCoS line, Manilla equipment, and working capital for increased sales and related inventory, work in progress, and receivables. The China plant will be financed half with debt, but a public offering is still highly likely. The dance is to minimize dilution, but still get enough money. Easiest way is to start from a higher share price......which takes a few months' preparation. Start-up costs for the China plant will be expensed, which I think is the correct treatment in the long run.... no drag on future earnings....and there is a pending change in AICPA rules on this matter, anyway (but not for plants opening in 1998). N.O. makes a good point about the particular circumstance we find ourselves in, at the moment, however....in that unless the financial community appreciates what we are doing for the long run, the stock price will be penalized at the very time we need a higher price. Margins will be reduced for at least a year by the China operations and currency devaluations in Asia. I have no idea whether the company can make up margin points through other manufacturing cost reductions. I think not, but increased revenues may yield the bottom line earnings everyone (no, the few of us who are paying attention) is expecting. The MBA student's analysis referenced upthread is interesting. Lots of typos and optimism (40% sales growth, as far as the eye can see). <G> The best overview of the direct view display industry that I have found to date, is at www.nml.org......... Search for "Flat Panel Display Devices" by Koichi Sadashige. I am trying to locate this guy, to see if he has written a promised study on the projection devices. The main things I learned at SID were (i) the company is rightfully a niche player, seeking non-commodity OEM relationships....due to the billions spent on (laptop) LCD technology by the Japanese, and less so by the Koreans, and related economies of scale, we cannot compete well in off-the-shelf, LOW INFORMATION displays; (ii) we have good people at all visible levels, and the company is well-regarded for innovation; (iv) it is necessary to work cooperatively and share technology to make progress in the display industries; (v) the markets we participate in are growing fast enough that there is room for multiple successful competitors.....for most participants, the CRT is the enemy, not the other flat panel companies; and (vi) the CRT will continue to dominate between 10" and 30" (there is a lot in this last point).

To: dfloydr who wrote (1500)	5/26/1998 8:23:00 PM
From: N. Saliba	Read Replies (2) \| Respond to of 3247

Hi Floyd The phone you saw (dummy one), how far from the eye you have to hold it so you see the picture? Just curious if you have to actually peek through a viewer or it is plain display? Regarding your question about the software, the software companies are well ahead the rest of the bunch to bring this smart phone to market. NOKIA is shipping now the NOKIA9000i that is a smart phone, and they just came out with a phone that has a backlit screen (sounds well behind what TFS is offering). Also NOKIA is coming out with another smart phone this Fall that is similar to the 9000i but with the half the size and wieght. All run on Geoworks operating system. There will be a lot more coming out and it seems the competition will be heating up and hopefully TFS will be there to offer their display as an advantage of one product versus the other. N.S.