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

To: Thomas Kirwin who wrote (8702)	5/22/1999 10:39:00 AM
From: Carl R.	Read Replies (3) \| Respond to of 17679

With the exercise of options on Reiter and TVoW, the construction of facilities in New York and LA, and the establishment of a currently non-revenue generating internal internet TV division, it is unrealistic to expect that AXC will use less than $10-15 million in cash this quarter. If Micronet sales start growing rapidly, they could use a lot more. In my estimation the end of June financials will show them with about $37 million left in cash and short term notes, possibly as high as $40 million. I estimate that they need to have $20 million to operate, so by my guess they will have only another $17-20 million they can put into these ventures after this quarter. Fortunately the rate of consumption of cash should drop after this quarter to more like $7 million a quarter which would allow them to reach the end of the year without additional funding. And of course if they scale back their ambitious plans the money will last much longer, but I don't think anyone here favors that. We're not saying that they're broke, simply that they are investing at a faster rate than they are producing cash. Growing companies almost always do that, by the way, and at long last AXC is a growing company again. We are also saying that it is prudent to plan for additional cash to be available before they need it. I have yet to see anyone provide any estimate of future cash flows that will not require additional funding in the next year. Carl