Post by
swguru on May 29, 2001 5:20pm
re: balance sheet
From recent 10-K "At March 31, 2001, we had cash and cash equivalents of approximately $46.1 million, no outstanding debt under any credit facilities, and approximately $243,000 of outstanding obligations under our equipment loans."
Cash:
At March 31, 2001 Cash per share= $46.1 million/50.4M shares O/s = $0.91/share
Revenues:
"We recognized net revenue of approximately $1.6 million for the three months ended March 31, 2001, which represented a decrease of approximately $5.6 million, or 78%, from approximately $7.2 million for the three months ended March 31, 2000."
AND
"For the three months ended March 31, 2001, sales to our largest customer, Siemens, accounted for approximately 84% of our revenue. For the year ended December 31, 2000, sales to our three largest customers accounted for approximately 90% of our revenue, of which sales to Siemens, CTC Communications Group and Lightyear Communications, Inc. (formerly UniDial Communications, Inc.) accounted for approximately 38%, 26% and 26% of our revenue, respectively. While we anticipate that sales to any specific customer will vary from period to period, we expect that we will continue to have significant customer concentration for the foreseeable future. To date, we have derived a significant portion of our revenue from a small number of orders and our sales have been made on the basis of individual purchase orders, rather than long-term commitments. In addition, while Siemens AG currently owns approximately 18.1% of our common stock and has been a significant distribution channel for us, Siemens may decide to focus its efforts in the future on Efficient Networks' products, given its recent acquisition of Efficient Networks. There can be no assurance that we will be able to compete successfully with our existing or new competitors, or that competitive pressures will not materially and adversely affect our business, financial condition and results of operations. "
So let's say they can maintain $1.5M in sales one year out we get
next years revenues at $6.0 M. Project rev/share is $6.0/50.4 M O/S=$0.11. Ouch!
That gives us a current projected Price/sales of $0.85/$0.11=8.5, which is quite high.
Reccommendation: STRONG SELL.