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To: hoffy who wrote (2989)	7/29/1998 5:29:00 PM
From: Nick	Read Replies (1) \| Respond to of 10081

I disagree. After charges the loss was $.23. Completely in line with what's it's been in the last few quarters. No one was expecting GMGC to gain money this quarter, as they've been spending to get to the Portico release day. I think everyone expected this loss, but hopefully the CC will shed some more light on the picture. If the CC is positive and so is the announcement tom. then we'll be making some money! nick

To: hoffy who wrote (2989)	7/29/1998 6:30:00 PM
From: Rob Anderson	Read Replies (3) \| Respond to of 10081

Im not concerned at all about the earnings I expected this report. GMGC has spent money to ramp up for Portico roll out and I expect a positive return on my investment over the next few months! If you would have done your D & D you would expect these numbers also.

To: hoffy who wrote (2989)	7/29/1998 6:55:00 PM
From: Ray Rueb	Read Replies (2) \| Respond to of 10081

Great News!! Confirmation of Portico release!!! << That's because people are in shock over the earnings and worried that they are about to lose a lot of their money. Nobody expected much but they really look terrible. >> I think you missed the core of this release... it was in BOLD at the top of the message: Company to Release Portico Service July 30 Of course expenses were higher! They are ramping up on a new product... Of course revenues are down! GMGC is only showing income from older products whose revenue has been in decline. Only truly uninformed people wouldn't understand this situation. << The Company incurred a net loss of $7.3 million, or $0.82 per share, in the second quarter of 1998 compared to a net loss of $6.4 million, or $0.43 per share, in the first quarter of 1998 and a net loss of $6.7 million, or $0.25 per share, in the second quarter of 1997. >> What did you think all the additional financing was for??? To cover the losses incurred while ramping up on the new product. GMGC will take 2 more quarters to show real profits from portico. << The net loss per share for the second quarter of 1998 included... >> ... lots of technical stuff associated with their financing ... << Excluding the effect of these adjustments, the net loss per share for the second quarter of 1998 and first quarter of 1998 would have been $0.25 and $0.23, respectively. >> Hey, on a per share basis, the loss isn't that bad considering all the hiring and infrastructure they've had to put into place to launch portico. << I bet this gets scalped tomorrow. They'l be better days to buy this in a few months. >> Now this is a different issue... The last time an earnings report came out, April 20?, we had 2 down days (10% down) followed by immediate recovery. The real question is... How many people were "shocked" like you? Personally, I was expecting worse numbers. I think more people were nervous that GMGC would not launch on the 30th. I also think that it was this nervousness that has held back the stock price. If we do go down tomorrow, I expect nothing more than a sharp drop (10%) at the open, followed by an up day which more than makes up for the open. If more news is released tomorrow (this would be consistent with what I feel about Markman; why would he allow his great launch day to be marred by a sharp price decline in the stock?), there will be a serious rise at 12:30ET on news. Warning: ALL of my comments are colored by the fact that I am very long on GMGC. Good luck to all Ray

To: hoffy who wrote (2989)	7/29/1998 9:06:00 PM
From: Frank Wechsler	Respond to of 10081

I have followed this stock since its IPO a few years back and have actually been long almost since then. The stock never "rose from single digits to over 20 on a promising product that failed". It did pop on the IPO up to about 32 (I think from 18) and then gradually faded. The hoopla, if I remember correctly, was caused by the fact that the company was originally formed by some important software engineers from Silicon Valley (including, I think, Andy Hertzfeld and Bill Atkinson from Apple, both instrumental in developing the Mac) and had the financial support in the beginning of several of the large tech companies. Its main product was called Magic Cap and was an OS for handheld personal assistants. Yes, that product did fail, and the stock went all the way down to below 2. However, comparing Portico to Magic Cap is like comparing apples to oranges.