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Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Edwarda who wrote (10253)	1/21/1999 9:04:00 AM
From: w2j2	Respond to of 12559

Edward, I agree with you and Bruce. Without the government contract, margins would have been better, and revenues would have grown. Fore's choice was to go for the government sale or not. The contract meant great revenues short term, and lots of potential follow-on revenues & profits (with better margins) over 7 years. "The largest enterprise network in the world." Fore needs to grow revenues rapidly (bulk up)to avoid being marginalized and stepped on as a 3rd tier networker. (Cabletron) Margins will come. This is a very competitive business, and they are up against monsters like Cisco, 3Com, and Bay. Those huge companies can easily undercut you in bids, and they are not THAT far behind in technology. Moving into the service provider and carrier spaces is helping margins, but look at the competition. Ultimately, they may have to sell out to a bigger gorilla company with deep pockets and larger world-wide sales force. IMHO wj