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Non-Tech : Secret Squirrels hit! -- Ignore unavailable to you. Want to Upgrade?

To: Trumptown who wrote (3595)	12/30/1998 7:14:00 PM
From: Tom Swift	Read Replies (1) \| Respond to of 12872

OK, Buying at $1 - 1 1/8 seems reasonable. I got a little confused skimming through the filings and news releases. They are not an ISP, they want to get into the digital phone market via hardware and services (and presumably software). Questions: Twenty people? (Rhetorical) What was the AT&T lawsuit about? Why does this new management team imply a turnaround of the company? Are the convertibles gone? How bad were they? What is the chance of some other form of dilution cropping up in the next year or so? From the Nov. 10-Q: Cash and cash equivalents and net working capital totaled $3,433,000 and $3,595,000, respectively, as of September 30, 1998. The primary source of cash was net proceeds generated from equity financings. The Company has relied on sales of new shares and the exercise of warrants and options to fund operations for an extended period of time. The Company received $10,150,000 and $1,000 in equity financing, for the year ended June 30, 1998, and the three months ended September 30, 1998, respectively. Its subsidiary, FNet, raised $398,000 for the year ended June 30, 1998 and $18,000 for the three months ended September 30, 1998. FNet has continued to experience losses, due to the growth nature of the Internet services business and development of the IP Telephony business. In addition to the equity financing described above, the Company's President has deferred portions of his compensation, and has on occasion converted debt to equity in order to preserve the Company's cash. The Company anticipates that its primary uses of working capital in future periods will be for acquisitions, increases in product development, expansion of its marketing plan, development of new branch offices and funding of increases in accounts receivable. Development of new branch offices may be achievable through acquisitions. Although the Company seeks to use its Common Stock to make acquisitions to the extent possible, many acquisition candidates may require that all or a significant portion of the purchase price be paid in cash. The Company believes that existing cash and cash equivalents, cash flow from operations and cash raised through private placements will be sufficient to meet the Company's presently anticipated working capital needs for at least the next 13 months. To the extent the Company uses its cash resources for acquisitions, the Company may be required to obtain additional funds, if available, through borrowings or equity financings. There can be no assurance that such capital will be available on acceptable terms. If the Company is unable to obtain sufficient financing, it may be unable to fully implement its growth strategy. Why did they have to choose Tempest as a brand name? I find this confusing and I am surprised that the Govt. puts up with it. Where is the intellectual property -- how are they protected? SOMBODY is going to make a lot of money in the packet telephone market in the next few years, why do you think these guys will the "the one"?