TCCO-They had a terrific quarter but I was puzzled about the way they handled it. It was announced on friday afternoon after the market close which is usually done when companies have bad news to share. The numbers were laid out matter of fact without any comments such as sales were 300% of year ago levels. That was quickly followed by more expansive comments that DSP9000 sales would be at lower levels in the following Qs. Perhaps they are downplaying their achievements because they fear it might attract more competition?
I see that they have an annual stockholder meeting scheduled for tomorrow morning. No doubt, they felt an obligation to get the news out ahead of the meeting. I also see that a year ago at the last annual meeting, the officers were awarded new stock options. The amounts were minimal but since they are awarded based on performance and last year was a lousy one, I would expect that. This year is a different story however ,sales and profits are booming. I also expect that the option prices are based on the current stock price. Which makes me think that maybe mgmt wanted to minimize the impact of this good news to keep their option price as low as possible...I agree with Gilead that fair price is around $10-$12 now, although I don't think we'll see it tomorrow. If anyone is near Concord MA tomorrow morning and has the time to attend the meeting, that would be great. One question I would have is what percentage of total sales were the DSP9000 sales last quarter. According to their website, DSP9000 is one of about 20 different products they offer in the business, government, and personal markets.
AI
