To: Alan Edgett who wrote (29034 ) 6/30/1998 8:35:00 AM From: drakes353 Read Replies (1) | Respond to
Alan:Their cash position (as far as i know) sits at a little over $3M, which is also their ANNUAL burn rate in prior years with no commercial revenues, so i don't see them running out of cash in three months. quarter ending March '98 cash burn was $2.328 million. If they continued to burn cash at the same rate, probably a fair assumption since they are trying to gear up the commercial side of their biz, that puts us at cash of $1.4 million as of today. They will be out of cash in a little less than two months (something like 54 days.)Further, they have a viable product in a booming industry that is only a little premature (12-18 months? to fruition). They're gov They have NO debt and sales are maturing, so if needed cash could be obtained without dilution if sales progress to 500k-1m a quarter by early next year. I'm not sure I 'd buy at $6 1/4, but unless you are into $1-2 dollars for a short move (I don't make these types of trades), there's little chance we'll see $3 if this "sale" is installed as billed. Recall, there's 14 trials currently underway, this is the second order from a seperate company and at $40k per unit = roughly $640,000 in commercial revenues isn't shabby for the sales department (certainly one of these a quarter will ensure resources for the near-term).
