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Technology Stocks : Spectran (SPTR)...Speaking of White Hot Lately -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (1111)	7/17/1998 12:39:00 PM
From: Uncle Frank	Respond to of 1147

Disaster Alert biz.yahoo.com SpecTran Anticipates 1998 Earnings Decline To Be Greater Than Previously Anticipated Second Quarter Sales Up But the Company Expects a Loss for the Quarter STURBRIDGE, Mass.--(BUSINESS WIRE)--July 17, 1998-- SpecTran Corporation (NASDAQ, NM: SPTR), which develops, manufactures and markets glass optical fibers and value-added optic products, today announced lower earnings estimates for the 1998 year and that results for the June quarter will be significantly below analysts' expectations. As previously announced, SpecTran continues to anticipate an earnings decline in 1998 compared with 1997, but presently expects the decline to be significantly greater than the 30 percent figure reported earlier. The lowered earnings expectations are attributed primarily to operational issues at the Company's Specialty Optics subsidiary, which are being addressed. Charles B. Harrison, SpecTran's President and Chief Executive Officer, has assumed operational control of this subsidiary until a new general manager can be recruited and is restructuring its management and systems. In addition, manufacturing and engineering personnel from the Company's Communication Fiber Technology subsidiary have been assigned to address specific operational issues. Harrison said, ''Sales demand at the Specialty Optics subsidiary remains strong. We are confident of our ability to resolve the operational problems and restore the business to its previous levels of growth and profitability. Once the operational issues have been resolved, the Company expects that significant growth in sales volume and profitability should resume. ''We are also experiencing lower than expected sales at General Photonics, our cabling joint venture with General Cable, where we are experiencing soft market demand and pricing, not unlike our competitors. We have implemented stringent cost control measures that we believe will lead to improved results at General Photonics for the second half,'' Harrison added. Although earnings for the first quarter 1998 exceeded analysts' expectations, the Company presently expects that second quarter 1998 results will be significantly below analysts' expectations, impacted by the operational and inventory issues at Specialty Optics coupled with a highly competitive market environment that resulted in price weakness and oversupply in our standard communication fiber business. As a result, the Company currently expects that SpecTran will record a loss for the period in the range of 18 to 21 cents per share on revenues of $16.5 million to $17.5 million. These results would put the Company in violation of certain covenants with its debt holders. As a result, SpecTran has initiated conversations with its debt holders to obtain waivers and/or modifications of certain covenants in its loan agreements to accommodate this temporary decline in earnings. The Company still anticipates double digit revenue growth in 1998 over the previous year, and expects to be profitable for the second half and full 1998 year.

To: Uncle Frank who wrote (1111)	7/19/1998 4:14:00 PM
From: YORE	Respond to of 1147

OK I'll respond. #1 Spectran can not be aquired or merged because of a clause in the multimode license that prohibits this #2 The large loss for the 2ndQ includes a .11 gift from Corning for termination of their sale agreement with SPTR. #3 Now that their expansion is complete they don't have the sales to utilize it. Asia and the Corning sales contract are the reason.The fiberoptics market is weak and new technology is making some of SPtr products in less demand and less competitive.