Zeev's Turnips Patch-No Politics (ZEEV)

[Alex G]

Solid earnings report from SCON...

"STI remains confident in its outlook for 2003 based on increasing market acceptance, especially among target customers. STI continues to maintain its guidance of $50 million in net revenues in fiscal 2003, consisting of approximately $40 million in commercial revenue and $10 million in government and other contract revenue. The company continues to make progress on its goal of profitability, which STI expects to achieve in the fourth fiscal quarter. STI expects third quarter net revenues of approximately $14 million.

"At June 28, 2003, STI had $16.8 million in cash and cash equivalents, and $13.9 million in working capital. STI enters the second half of 2003 with a strong balance sheet, shored up by the proceeds of our recent equity private placement," continued Thomas. "We are well positioned to capitalize on the increasing demand for network performance enhancement solutions that enable wireless operators to 'Do More with Less.' Helping our customers maintain control of their CAPEX and OPEX budgets is keeping STI on track to achieve our goal of profitability in the fourth quarter of this year."