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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (1019)	5/21/1999 1:38:00 PM
From: jeffbas	Respond to of 1250

Paul, you may have it wrong on the preferred. CMCI has a preferred stock asset in Cortelco on CMCI balance sheet -- with I believe a $10 million par value carried at 5+ million. That will be converted to Cortelco common as part of the IPO and CMCI will be one of the selling shareholders in the underwriting. How much they will be selling I do not know. They also have relatively short term Cortelco notes in their assets for about $5 million. I guess these will be paid when due. ACTM ongoing Capex was mentioned on the CC at $1.3 million for the quarter, and depreciation at $.7 million --> close to $3 million cash flow per quarter (simply adding earnings plus depreciation). How big of an issue do you think design center capabilities and up to the minute mfg tools really would be for the combined company, in view of their current customer list -- which seems to suggest they aren't bad.