Has anyone ever seen such a press release?
Friday December 18, 6:30 am Eastern Time
Company Press Release
SOURCE: Coyote Network Systems, Inc.
Coyote Network Systems: Kevin Petrie of TheStreet.Com Obviously Does Not
Get It
WESTLAKE VILLAGE, Calif., Dec. 18 /PRNewswire/ -- Coyote Network Systems, Inc. (Nasdaq: CYOE - news) today said that Mr. Kevin Petrie, a reporter
for TheStreet.Com (TSC), obviously does not, or chooses not to, understand Coyote Network Systems and the new, emerging telecom markets in which the
Company competes. If Mr. Petrie understood this, he would not fax Coyote innuendo- laced, typo-filled questions like:
* Were you aware that Crescent's company address is a PO box?
* Were you aware its phone number is a message service and were you aware
that the phone number listed in D&B for the Crescent [sic] is a private
home number?
* Did you perform a legal check on Crescent communications [sic]? Or
eugene curcio [sic]?
* Do you normally do business with companies that are unlisted and have
no business address?
Frankly, Coyote finds these questions inane, naive, and revelatory of Mr. Petrie's lack of knowledge of standard business practices, in general, and fast-growth
telecommunications specifically. Petrie's actions could be interpreted as an attempt to harm the Company, its customers, and vendors and to have caused serious
harm to Coyote's shareholders.
Coyote's invitation to TheStreet.Com
It is exactly because of this line of naive approach that Coyote's chief executive and chief operating officers originally sent a personal invitation to Mr. James J.
Cramer, co-chair of TheStreet.com, to meet yesterday at Coyote's Engineering Center in Richardson, TX. The purpose of the meeting was to demonstrate the
progress the Company has made towards the Company's previously announced strategic plan and to visit the construction site where Crescent Communications'
telecom equipment will be located. Mr. Dave Kansas, editor-in-chief of TheStreet.Com, told the Company Mr. Cramer has an arm's length relationship with
TheStreet.Com's editorial group, and therefore, was not the correct invitee. Coyote is gratified that Mr. Kansas has tentatively accepted our invitation, pending
scheduling. In addition, Mr. Kansas has offered to send Mr. Petrie on a moment's notice.
The Company has made it clear Mr. Petrie is not welcome. However, Coyote has also made it clear that Mr. Kansas is welcome, at his very earliest convenience.
Coyote's Strategy
Coyote Network Systems is a real Company, doing real business, with real customers and real vendors. The Company has more than 100 employees and had
revenues of more than $22 million for the first six months of fiscal '99, ended September 30,1998.
* Coyote is leveraging its telecom switching technology to deliver
international and affinity-based long distance services, and "back
room" operations and support services, primarily to emerging carriers
and affinity groups. A fundamental component of Coyote's strategy is
the consolidation of switchless resellers. The company intends to
convert acquired non-facilities-based carriers into VoIP/VoATM (voice
over Internet Protocol/voice over Asynchronous Transfer Mode) switch
based entities. Coyote expects to benefit from transforming acquired
switchless resellers into "next-generation" carriers by providing them
with switches, facilitating equipment financing, providing facilities
based back room operations, helping them improve margins, increasing
quality of service, providing a path to voice over data networks, and
creating higher valuations for those companies.
* The Company is executing on its plan to accelerate growth by continuing
to partner, take minority equity positions and/or acquire emerging
switchless long distance resellers and complementary technology
companies. Earlier this year, the Company acquired 80% of American
Gateway Telecom, a provider of wholesale international long distance
services to carriers, and 100% of INET, a provider of international
long distance services, primarily to affinity groups, i.e., French and
Japanese speaking people in the U.S. In September, the Company
acquired a 19.9% equity interest in Crescent Communications, Inc., a
new, emerging wholesale telecom service provider to select major
international markets.
* In addition, the Company plans to accelerate growth through its
recently announced joint venture, TelecomAlliance, that plans to add
features, functions and assets to enhance switchless reseller's value.
TelecomAlliance will offer growing switchless resellers the opportunity
to route traffic over Coyote's growing network at reduced costs.
TelecomAlliance plans to provide switches, arrange equipment financing,
billing, traffic management, and network operations and support
services. TelecomAlliance plans to carry traffic for up to 30 growing
switchless resellers who average approximately $2 million in revenues
per month. To date, 16 potential members have signed memorandums of
understanding.
Because Coyote management does not feel Mr. Petrie can be trusted to deliver the straight truth, please visit Coyote's Website (www.cyoe.com) for a complete
copy of Mr. Petrie's questions exactly as we received them.
About Coyote Network Systems
Headquartered in Westlake Village, CA, Coyote Network Systems (Nasdaq: CYOE - news) is a growing telecom provider of equipment and international long
distance services. The Company has more than 100 employees and had revenues of more than $22 million for the first six months of fiscal '99. Coyote Technologies
provides scalable Class 4/5 telecom switches and IP (Internet Protocol) gateway systems. Headquartered in Houston, TX, American Gateway Telecommunications
provides international long distance services to carriers. Headquartered in Los Angeles, CA, Interactive Network Systems markets international long distance
services, primarily to affinity groups. CNS is authorized to provide competitive local exchange carrier services in California. For more information, please visit the
Company's Web site: cyoe.com, or call 1-818-735-5385.
The statements in this news release may be considered ''forward looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995 and
involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future
performance suggested in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date
hereof. For more complete information, please refer to the Company's Form 10-K and Form 10-Q filings with the SEC.
SOURCE: Coyote Network Systems, Inc.
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