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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Tim McCormick who wrote (2497)	9/9/1998 6:17:00 AM
From: MikeM54321	Respond to of 4134

From MS Investor: "Foreign sales make up about 60% of revenues." From most recent SEC filing: "The Company's net sales decreased 11% from $20.5 million in the second quarter of 1997 to $18.2 million in the second quarter of 1998. For the six month periods, net sales decreased 13% from $39.5 million in the first six months of 1997 to $34.4 million in the first six months of 1998. This decrease in net sales was attributable to lower shipments to international cable customers, particularly in Canada, Latin America and Asia. International sales were down 37% in the second quarter of 1998. In recent months, certain Asian currencies have devalued significantly in relation to the U.S. dollar. The Company believes that recent financial developments in Asia were a major factor contributing to the Company's lower net sales in Asia in the first half of 1998." ____________________________ Tim McCormick, I think the stock price may be getting hit because of the above. Appears to be a real problem. I believe, "Asia" primarily means, "Japan." So as the yen regains strength, maybe it will translate into new orders for HLIT. It's a very tough market to be selling into now. Canada isn't getting any better either because they are primarily a commodities driven economy are are suffering because commodities prices are very low. They just boosted their interest rates a full percentage point because of it's weak currency. Not much HLIT can do about the foreign economic problems. Sounds like HLIT has some leading edge products, but are caught in foreign economic turmoil. If they are smart, they will focus heavily on domestic sales. That's where the money is now. Maybe they will be able to increase their domestic sales. MikeM(From Florida)