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Technology Stocks : TSI TelSys Corporation - Satellite communications -- Ignore unavailable to you. Want to Upgrade?

To: Robert who wrote (121)	5/5/1999 8:01:00 PM
From: TheBusDriver	Read Replies (1) \| Respond to of 241

Hummm.....doesn't look too good. Agree the Japanese market has not downturned in 1999.....20% lay off is quite a bit.....then that is what you have to do when you are not getting the expected revenues. bummer.

To: Robert who wrote (121)	5/6/1999 10:00:00 PM
From: Ron Struthers	Read Replies (1) \| Respond to of 241

Hello Robert, here is some comments I sent out in an update I was surprised on how the news came out . This is not the kind of news you halt the stock for. It might have easily been released with some other more positive sounding news. In any case the market just yawned as usual and a whole 8,000 shares traded, knocking it down $0.15. Simply put, the market does not care and is not at all aware of this stock yet. I don't think the news is any big deal and had to read it a few times, wondering why it was released on its own. I don't believe the market place had any focus or concern about Japanese sales but was more apprehensive on future NASA and US Defense Dept. orders. I suppose to reduce staff 20% you need a reason to do so and this was it. To TSI, Japan is NEC, that has been one of their large customers in the past. Japan is in economic difficulty and NEC in particular has been hit hard, along with political scandals and the Japanese Space Agency. Therefore, TSI expects orders will be down from NEC. I don't know why it was felt necessary to make news that basically is about one particular customer that will have less orders. I question whether this news is material to the market, but I suppose unfortunately, it is quite material to the 20% of employees who lost their jobs. I will give the company credit for being forth coming with this news and I do believe from when I originally reviewed their financial statements that the company is well run and a tight rein on expenses and costs is maintained. This is another example of TSIs prudence in this area. As far as what the effect to TSI sales and revenues this will cause? I expect it will mean a temporary slow down or a leveling off of sales growth, but not a decline in revenue and sales. TSI has brought in new customers like the US Defense Department and profit margins are improving. Year end and 1st qtr. results should be out soon and this will help paint a clearer picture of TSIs direction. I am quite keen that their LavaLogic division can provide some very positive devlopments this year. Ron