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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Thure Meyer who wrote (8623)	5/21/1999 12:02:00 AM
From: Carl R.	Read Replies (2) \| Respond to of 17679

Going from memory, at the end of the first quarter Ampex had about $51 million in cash and short term investments. They have a negative book value which substantially impairs their ability to get bank loans, so treat the $51 million as all that is available. At year end they had $63 million, so they burned $12 million in the first quarter. Ampex Data Systems used a couple million dollars, and Micronet used about $4 million if I recall. They used $1 million on internal video operations and the rest in acquiring the initial stake in the subsidiaries. In exercising the options this quarter they will use another $8 million, taking them down to $43 million. I estimate that they need to have $20 million on hand to pay bills as they come due, so that leaves them only $23 million left. Internal internet video operations will probably consume and increasing amount of cash, I presume about $3-4 million per quarter. Add that to the negative cash flow at Micronet and the cash position will start getting uncomfortably low by the end of the calendar year. So yes, they can get through 1999 with the cash they have on hand, but they absolutely must have more cash to continue to expand in 2000. Carl