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Technology Stocks : VTEL: Anyone else follow this? -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (1058)	11/6/1998 10:47:00 PM
From: Yeadon	Read Replies (1) \| Respond to of 1214

You have it right. VTEL just issued a profit warning, saying hardware sales substantially below expectations. The advertising really paid off! I always thought those adds were stupid. The VTEL folks have no clue about markets and products. The CLIX merger, as I warned, is a real zero. Expect stock to be 2-3 on Monday. Yeadon

To: E_K_S who wrote (1058)	11/7/1998 11:18:00 AM
From: E_K_S	Read Replies (1) \| Respond to of 1214

Friday November 6, 8:00 pm Eastern Time VTEL Corp issues Q1 '99 profit warning AUSTIN, Texas, Nov. 6 (Reuters) - VTEL Corp., a maker of multi-media visual communications systems, said Friday its first quarter fiscal 1999 enterprise hardware revenues fell ''substantially short'' of expectations, leading to a ''significant'' impact on earnings. The company said its final consolidated results are not yet available. VTEL was expected to earn $0.04 in the first quarter, according to First Call Corp., which tracks analysts consensus estimates. Despite sluggish hardware sales, the company said its software, network, personal/workgroup and global services units met expectations. The company said it is finalizing reviews of capital and operating budgets to achieve positive earnings and cash flow performance at lower near-term revenue levels. ===================================================================== They can not even make $0.04 on $180 million in revenue. Revenue falling, earnings falling (now several quarters in a row), watch the free flow cash flow...I bet it is negative too. Expect inventory write offs and layoffs. Management must act fast to stabilize the company. Look for a major restructure and another one time hit to earnings. PLCM is growing revenues 30% EACH quarter and taking market share from both PCTL and VTEL. Their earnings have doubled each of the last two quarters and have surprised the street estimates by 100% each time. PLCM's sales will exceed $200 million by next quarter and earnings should be $0.15-$0.20/share.... watch they probably will report $0.25/share! I really do not know what options VTEL has other than their service business. IMO their complete product line is obsolete and way over priced (almost 200% more). Perhaps they can somehow become an Internet company and leverage some new service business from their current customer base. WOW...how will they stop the bleeding? I did not expect things to get this bad this fast.... EKS