Look how much money both FTEL and FNET are losing. How long will the cash last? The 10Q for the quarter ended September 30, 1998, should be out by around November 15, 1998. We'll see if things really improved. Did the revenues increase only to have the cash burn faster? Can FTEL afford that kind of growth? At that rate, how long before they get profitable- if ever?
We'll see soon if my concerns were appropriate. We'll see how meaningful this recent run-up ends up being. Who knows, maybe I'll be wrong about FTEL's cash-burn rate continuing until both FTEL and FNET having a private placement, or something.
I offer ojective proof of FTEL and FNET condition as follows. Notice the decreasing year over year sales and the greatly increasing loses:
<<Link to the 10K for the year Ended June 30, 1998, from which this information is taken:
www4.edgar-online.com
37
FRANKLIN TELECOMMUNICATIONS CORP.
AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
--------------------------------------------------------------------------------
NOTE 14 - LINES OF BUSINESS (CONTINUED)
........................................ For the Year Ended
........................................ June 30,........ June 30,
............................................1998...............1997
Net sales
.... Franklin...................... $.. 771,000..........$ 1,337,000
.... FNet...................................606,000................398,000
............TOTAL....................$ 1,377,000...........$ 1,735,000
............................................===========........===========
Operating losses
......Franklin..........................$(3,257,000)........$(1,867,000)
......FNet.................................(1,707,000)...........(957,000)
...............................................-----------......................-----------
..........TOTAL.........................$(4,964,000).........$(2,824,000)
............................................===========..........===========
Identifiable assets
.....Franklin.........................$ 7,175,000..........$ 3,163,000
.....FNet................................ 1,717,000................351,000
................................................-----------...................-----------
.......TOTAL......................$ 8,892,000...........$ 3,514,000
.........................................===========........===========
Capital expenditures
.....Franklin........................$.. 315,000.............$..204,000
.....FNet....................................54,000................120,000
..............................................-----------...................-----------
.........TOTAL......................$...369,000...........$...324,000
.........................................===========..........===========
Depreciation and amortization
....Franklin............................$...81,000...........$...52,000
....FNet......................................86,000............... 58,000
.................................................----------.................-----------
..........TOTAL.......................$...167,000.........$...110,000
..........................................===========.........===========
Segment information is not shown for any other periods because the
Internet business was not material to the operations of the Company. >>
FTEL: $ 1.02
VALUESPEC |
