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Technology Stocks : Concurrent Computer (CCUR) -- Ignore unavailable to you. Want to Upgrade?

To: Christiaan McDonald who wrote (5249)	10/2/1998 10:18:00 AM
From: Goodboy	Respond to of 21143

I was kicking myself for not buying SFA below $20 before it took the post TCI/AT&T deal surge to $28. I thought it was lookin good again as it dipped below $20. NOT! Analysts have been afraid of SFA and GIC because of theri vulnerability to foreign markets, which have been weak. I would doubt that GIC has as big a shortfall as SFA, but another player announced bad earings earlier this week and the analysts said it was not common to the other industry players. Wrong. Bottom line, the shortfall has nothing to due with the digital roll out, since that is still a small contributor to overal revenue at this point. The stock could look good down here when the street refocuses on the digital opportunity. I think I will just watch until the dust clears. Long term, this may be a great entry point. Lot of red faces on the street.

To: Christiaan McDonald who wrote (5249)	10/2/1998 10:36:00 AM
From: Goodboy	Read Replies (1) \| Respond to of 21143

I missed the conference call, but from the analysts I have spoke with, SFA has 40% exposure to foreign markets and their satellite business was especially hard hit this quarter. The surprise for analysts, but not for CCUR shareholders is that Explorer 2000 set top box shipments started later in the quarter than was expected, leaving revenue projections short (it ain't Corky's fault this has taken so long. SFA has just gotten production up to 10,000 boxes ber week. That number will double going into 1999. They also sighted some technincal problems with the head end services and sqabbling by some MSO's as to which operating system or software to have installed on the box prior to delivery. These factors caused the delay in shipments this quarter. I will give another update after I hear the call, unless someone else has already listned.

To: Christiaan McDonald who wrote (5249)	10/2/1998 2:04:00 PM
From: Goodboy	Read Replies (1) \| Respond to of 21143

Some key points from SFA conference call: Weakness in revs primarily based on satellite business and foreign shipments. Gross margin also contracted in that market segment As of the end of this quarter, they have shipped and have installed or are currently completing installation of over 40 digital networks covering 15 million cable subs. Delay in shipping set tops for two reasons. One is that the MSO's are stepping up deployment beyond SFA's expectations. The deployment will be broader and faster than SFA had predicted. The second is that they have been upgrading and changing software at the head end level to allow for a broader deployment of services than SFA had orginally expected. This includes e-mail, internet browsers and VOD. SFA said that they had gone out to their MSO clients and have demonstrated operating IVOD (not in the lab) at the head end in the field and that it was succesful. No mention of CCUR or SEAC (unless I missed it). We know it was one of them or both. They are very optimistic on deployment and the MSO's are ordering more digital networks for their markets than had been anticipated as well as more service capability out of the gate (SFA thought they would layer on services slowly over the course of 99 and 2000). Over 300,000 set tops will be out the door by year end. They found it very encouraging that the MSO's are being so agressive in deployment both geographicly and in service scope. They mentioned that the issues have not been related to the set top box, but to head end configuration for more services.