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To: mod who wrote (576)7/22/1998 9:32:00 AM
From: Q.  Read Replies (1) | Respond to of 994
 
Dennis, below are the inventory figures as of Mar. 31. If they continued
to grow the inventory in the June quarter they way they did in the March
quarter, then your estimate of $10 M inventory would be about right.

I'm curious, though, why you expect that all of these inventories can
actually be converted into sales, if the co. just said the product
doesn't work yet. It's fairly common for inventory in initial stages
of ramp to just go into scrap -- why don't you expect that to happen
here?

5. Inventory consisted of the following at:
March 31, December 31,
1998 1997
---- ----
Raw Material $3,422,895 $901,548
Work in Progress 72,147 24,272
Finished Goods 2,794,514 775,115
---------- ----------
$6,289,556 $1,700,935