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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 (1113)	7/17/1998 1:31:00 PM
From: JakeStraw	Read Replies (1) \| Respond to of 1147

SpecTran sees Q2 loss $0.18 to $0.21/shr STURBRIDGE, Mass., July 17 (Reuters) - SpecTran Corp. said Friday it expects to record a loss for its second quarter in the range of $0.18 to $0.21 per share on revenues of $16.5 million to $17.5 million, significantly below analysts' expectations. First Call estimates put the company at a profit of $0.12 per share. The company said in a statement it also estimates lower earnings for the 1998 year. These results would put the company in violation of certain covenants with its debt holders, the company said. SpecTran said it initiated conversations with its debt holders to obtain waivers and/or modifications of certain covenants in its loan agreements to accommodate the decline in earnings. SpecTran said it continues to anticipate an earnings decline in 1998 compared with 1997, as it previously announced, but now expects the decline to be significantly greater than the 30 percent figure reported earlier. The company attributed lowered earnings expectations primarily to operational and inventory issues at the company's Specialty Optics subsidiary, which the company said it is addressing. Charles Harrison, SpecTran's president and chief executive, 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. The company also said it is experiencing lower than expected sales at General Photonics, its cabling joint venture with General Cable Corp. (GCN - news), due to soft market demand and pricing. The company said it has implemented stringent cost control measures to lead to improved results at General Photonics for the second half. Once the operational issues have been resolved, the company said it expects that significant growth in sales volume and profitability should resume. The company said it 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. SpecTran's stock was trading as low as 4-3/8 after being released from a halt in trading on the Nasdaq market, down from the open at 7-1/8. Other factors the company cited for its current troubles were a highly competitive market environment that resulted in price weakness and oversupply in its standard communication fiber business. SpecTran develops, manufactures and markets glass optical fibers and value-added optic products.

To: Uncle Frank who wrote (1113)	7/20/1998 12:59:00 AM
From: Grainne	Read Replies (2) \| Respond to of 1147

Oh dear, Frank, this is quite disappointing. I looked on my local paper and discovered SpecTran in the BIGGEST LOSERS column!! I guess it sort of goes back to a question I asked awhile ago--is the kind of general use product they make going to be really in demand, or is specialty fiber the entire future? Since you asked in a previous post, I bought this stock at the highest it ever got, whatever that was, during the small cap tech stock rally in the late spring of 1996. I was intending to make a decent profit short-term trading it, but the bottom fell out of the rally and I have been left with a portfolio of disaster stories. I also own CAI Wireless, a total loss which just declared bankruptcy, and Ancor, and Interneuron. I really needed SpecTran to be strong to help me get out of this mess, so it is really very disappointing. I commiserate with you about your daughter's IRA. I finally decided NEVER to recommend stocks to anyone because of sad stories like that.