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To: mod who wrote (574)	7/22/1998 8:57:00 AM
From: Q.	Read Replies (1) \| Respond to of 994

Dennis M, re. financing a ramp, I think they still have to do the convertibles. Bank financing from receivables would help, but it would neither get them started, nor would it allow a very fast ramp after they did start. re. getting started: they would have to finance their inventory, production and distribution costs. All of these cash costs would be incurred before they got to have any receivables. re. sustaining a ramp: They would only be able to get a certain percentage of receivables, plus they would not be able to grow the inventories etc. very fast if they are relying merely on the growth of the receivables to finance it. This kind of financing works fine for a fairly mature product, but not at the very beginning of a ramp.