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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Bobby G. who wrote (24827)	6/24/1998 4:52:00 PM
From: Chicago	Read Replies (3) \| Respond to of 36349

To All: I just got back from the shareholder meeting...and here is my take on it. Charlie spent the first 20 minutes introducing the board, briefly explaining what the 3 business segments Pairgain is focused in 1] HiGain products ( T1/E1 ) 2] Small subscriber (PGFlex, PGPlus) 3] High Speed Internet Access (ADSL) and taking care of the proposal voting. All of the proposal passed. Then he opened it up for questions at about 10:30am It was pretty clear to me most shareholder's were not in a jovial mood. He fielded questions until approximately 11:45am(that's when I left). He did get asked about his appearance on CNBC and also about the merger rumors and if they were shopping Pairgain around. He stated that the CNBC appearance was not scheduled until yesterday afternoon and it wasn't clear from him what the real intent of the interview was for. He also said he would do what was in the best interest of the shareholders, customers, and employees of Pairgain when it came to considering a merger. He stated that he has not been approached by Cisco or Lucent, although he did say he would like to talk to Lucent (whatever he meant by that). When asked what was the long-term revenue growth expectations for Pairgain where, he stated in the 15-20% area(not a hi-tech growth stock in my book). He did state they are seeing 40% quarter over quarter growth in their PGFlex product area and would estimate their 1999 revenue for this business segment to be in the $100M area. They expect their HiGain product revenue to be flat, even though their unit shipments will increase, because of the price reductions of Adtran. He also restated that they are going to be a player in the high speed internet access(ADSL) market, but still believe their is more hype than substance until 1999-2000. When asked what his guestimate for revenue would be 5 years out he said ~$500M. In regards to International, he said they are deploying significant HiGain products in Brazil, Southern China, and have started in Japan. They are not doing much in Europe at this point. He estimated international would make up about 15% of overall revenue in 1999. My take...IMHO...they are shopping this company around and for the right price would sell. I'm sure I have missed some things, but you get the gist of it. Best Regards, Chicago P.S. Charlie must have picked up a few more shares this morning after his CNBC interview, because he said in the interview he had 400,000 shares, and in the shareholder meeting he said he had 440,000 shares!