Value Microcaps Motherboard

[southacresdave]

TELT...new contracts awarded in 2010

Backlog from 10K: The Company's backlog at December 31, 2009 was approximately $9,547, as compared to $17,181 at December 31, 2008.

Since the company depends a lot on on the $2.5B school e-rate program, I have been researching the e-rate program extensively. The fiscal year for the awards starts approx. May 1rst and goes through April of the next year. Money is released in "waves" on a weekly basis. Here's a history of the award numbers (on an annual basis) for the state of New York (the New York Department of Education made up 50% of their revenue in 2009):

http://www.e-ratecentral.com/us/stateInformation.asp?state=NY

GOOD NEWS: Some recent awards that TELT has received since the stated backlog date of December 31rst, 2009:

On February 2, 2010 Teltronics was awarded a $7.2M contract from the New York Department of Education for "internal connections". This money was awarded in wave 39.

http://www.e-ratecentral.com/us/reports/frnDetail_all.asp?v=&frn=1913531&ste=NY&fy=2009

On February 2, 2010 Teltronics was awarded another $3.4M contract from the New York D.of E. for "internal connections". This money was also awarded in wave 39.

http://www.e-ratecentral.com/us/reports/frnDetail_all.asp?v=&frn=1913535&ste=NY&fy=2009

Why didn't the CEO mention these? Who knows. This is also the same company that didn't put out a pr for earnings till the 3rd Q of 2009 (and only then after shareholders bitched at them).

Both of these awards were part of the 2009 program (remember, it extends to April 2010 and isn't based on normal calendar). For definitions on the form of "Service Start date:471" (the initial application date), FCDL date (Fund Commitment Decision Letter), and the "Service Start date:486" (the date the provider of the service is paid) see the following:

http://www.georgialibraries.org/lib/erate/ERate_Discounts.pdf

This information all comes from the site listed below: (This should allow those that follow TELT to know when it is awarded major contracts through the e-rate program). Note: They have already submitted for 5 awards for their yearly maintenance contracts (ICM: Internal Connections Maintenance). As the 2010 year begins there should be many more I.C. awards (internal connections) received.

http://www.e-ratecentral.com/us/reports/utilizationSummaryChart.asp?typ=spin&ste=NY&ky=143007323


Dave