Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (2687)	4/10/1999 6:59:00 AM
From: Hiram Walker	Read Replies (1) \| Respond to of 4134

SteveG et all, I hope this quarter is a big one,but not sure. And after every earnings release there is a sell-off,its pre-programmed. caution here. Read this article. multichannel.com By FRED DAWSON April 12, 1999 New York -- The cable industry appears to be heading into treacherous waters on the high-speed-data front, failing to fully exploit its opportunities in advance of the rollout of consumer-friendly digital-subscriber-line services. It now looks like the best that the industry can hope for in terms of retail distribution of its modems is spotty support by late 1999. Even worse, despite the fact that demand is much stronger than anticipated, the industry as a whole remains unable to pull out all of the stops in marketing the service where it's available, due to deficiencies in the field support that's needed to keep up with the potential installation pace. These points were clearly etched last week in two days of discussions here at a conference presented by Kagan Seminars Inc. Notwithstanding bullish projections by Kagan analysts -- 1.6 million cable-data customers by year's end and a growth trend that anticipates twice as many cable-modem users as DSL users through the next 10 years -- the tenor of remarks by operations and vendor representatives speaking at the meeting was that the cable industry is far more vulnerable to competition than these numbers suggest "We're seeing 5 percent penetration of homes passed in less than nine months from the date of launch," Rusak noted, adding that operating cash flow was hitting breakeven within 12 months, with operating margins sometimes exceeding 45 percent. Indeed, Doug Semon, principal Internet-system architect for Time Warner Cable, said his company is hitting "greater than 14 percent in some systems." Citing Kagan projections calling for 3.3 million cable-data subscribers by year-end 2000, he added, "I personally think that those numbers are low." So be careful out there,its a jungle. Tim