To: ksuave who wrote (36463 ) 7/20/1998 8:53:00 PM From: topwright Read Replies (2) | Respond to of 41046
Richard; In my previous post referencing Ericsson/Bosnia the importance that is to be pondered is this: A tremendous amount of resources are being invested into the region due to its importance as a strategic economic center. Geographically, Bosnia-Herzegovina is located on in the western Balkan Peninsula on the Adriatic Sea, an arm of the Mediterrean. Bordering this region sits one of the largest reserves of crude oil in the world. This same oil field is landlocked, and Bosnia represents the shortest route in which to lay a pipeline to the sea. The Ericsson press release represents only but a smidgeon of the monetary investment that will be poured into this devastated region to restore its civil and economic infrastructure. Franklin, in my opinion has seized a tremendously advantageous opportunity not only in terms of its geographical importance, but also in terms of being timely. Due to the satellite up-link equipment they are able to establish a beach-head so to speak in an area where communications are literally nonexistent. As Ericsson and others begin to establish these land line communications, Franklin will have had the benefit of being their first in establishing a corporate and residential clientele. As the land-line services are built out, Franklin will be able to easily transition to a multi-functioning network. Besides the potential as a strategic economic center in the region, Bosnia also remains geographically situated at the crossroads of three continents, offering very favorable conditions to become a strategic communications center. In conclusion, the importance of the Ericsson announcement is that it serves as validation that we can consider ourselves very fortunate to have been able to have acquired such a promising opportunity. BTW, my conversations with WLV today indicated that the installation of "DA SWITCH" is proceeding smoothly. If all continues to go well, not only will the Bosnian entity be producing revenues, but also many other domestic and foreign ventures should be up and running by months end......and today is the 20th. In closing, I wanted to convey that it is already on record that Bosnia alone is expected to return an estimated $100k per month in revenues. Each deal that is announced should provide us with equally substantial incoming cash flows, give or take a little. Until the time that they are all brought up to full capacity you may want to cut those figures in half. I am told that the contracts are structured to take about 90 days to be running at capacity in accordance with their contractual commitments. If that is the case, then I would say eight such ventures would put us at breakeven almost immediately, and 90 days down the road should be producing a steady stream of black ink. My best guess-timation is that Franklin's burn rate is about $400k per month. If that is the case, then these projections could eliminate almost half this burn rate by just flipping the switch on those contracts already announced. Making projections are risky, but if everything plays out we could see a 1st quarter with reflecting a rise in revenues, followed by profitable 2nd quarter. I base this on the assumption that August will be our first operational month, generating receivables in September. Simultaneously the various ventures are scheduled to be ramping up over this same 60 day period, resulting in October as the timeframe in which we should become a profitable entity. If that is the case, October, November, December (2nd QTR), could very well be impressive. RB Note: The above is only a projection based on the assessment of many factors known and unknown.