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Microcap & Penny Stocks : Linkon (LKON): CTI Company -- Ignore unavailable to you. Want to Upgrade?

To: wombat who wrote (859)	2/1/1999 6:23:00 PM
From: Rich Genik	Respond to of 1082

Hey wombat, was busy at work today... So let me do the math here: AT&T setup 2 or three call centers in the past couple of years using LKON telephony products. Each center handles several hundred lines, and the total AT&T order was around $10M. The benefit to LKON, for the purposes of argument, was about $3k/per line. Now, LKON products are scalable: that means that at each distribution node, say your local TW office, adding lines is much cheaper than buying new crates to setup a new distribution node. Again, for the purpose of argument, lets say that the LKON benefit on equipment sales is $100/line. This, of course, excludes the possible home equipment sales, which AT&T estimates at $300-$500/home. Say LKON's share could be $30. Something seems wrong here: I come up with multi-hundred million dollar sales for LKON during deployment into 10M homes, or around 10% market penetration. Let's say that LKON only supplies AT&T with 10% or it's equipment. Now we're back into the $50M dollar range over the next couple of years. Anyone have a comment on this? Are we talking $50M of $500M in possible sales? I just haven't paid enough attention lately to get closer than a factor of 10 estimate. (Then again, as they say in cosmology, what's an order of magnitude between friends.) In any case, this could be HUGE for LKON, and probably accounts for the 30% run-up today. Cheers, Rich