FONIX Speech Technology Conference Call Summary - 500 Beiträge pro Seite

[ethues]

FONIX Conference Call of May 18, 2000
http://www.ragingbull.com/mboard/boards.cgi?board=FONX&read=…

**SUMMARY OF CC BY SENTINEL, VALIANT, MUCMARA***

I am posting all three takes on the conference call. People can make their own decisions.

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By: Sentinel
Reply To: None
Thursday, 18 May 2000 at 5:47 PM EDT
Post # of 99287
UNBIASED CC remarks:
I just bought a little FONX...and am considering getting more. I listened to the CC to see if this was a good idea. Here are
the points I thought pertinent. I gathered my own conclusions, but I won`t post them here. This is neither hype nor heresy,
just FYI...

1. All debt was paid off over the last 18 months

2. Still seeking private equity, as sales is not currently enough to support the monthly burn rate of about 1MM/month.

3. FONX is the ONLY speech vendor in Microsoft`s Embedded Partners Program

4. FONX is the ONLY speech vendor in Intel`s Developer Forum

5. Outsourcing: $1.5-$1.8 million/month 18 months ago...currently $50K/month

6. A PR firm will be retained at some point in the near future/short term. I read this as 6 months or so.

7. FONX`s technology is unique in that it does not build upon public domain information, as does LHSP, Dragon, IBM, but
rather upon proprietary "neural network" technologies. Others in the industry cannot patent the public domain information,
but FONX has 4 issued patents, 11-13 pending, and 12 or so in progress.

8. There have been comparison studies done of the technologies within the industry, but these were done by consumer
electronics companies and chip manufacturers, and have not been released publicly. FONX is working toward this, but
refers to the facts in #`s 3 and 4 to prove what those results imply.

9. FONX technically has no competition in that their technology is unique and they are making product available NOW.
FONX believes LHSP to be a great company, with the ability to be dominant, BUT their PR`s promised embedded
products in the future - 6-12 months. LHSP`s algorithms currently require large processors and they have no ready
product for smaller RISC processors such as StrongARM. They will be in the embedded niche soon though.

10. Nasdaq application might be filed within the next 12 months. (From my personal experience, it is another 3 months or
so for approval)

One major point is that analysts predict the VR industry to be worth anywhere from $3-30 billion in 3-5 years, dependingon
whether the technologies can be made convenient and dependable. If anybody cares about my own conclusion, it is that
investing in just about ANY company with a decent VR product will be inherently profitable. At these prices, FONX may
well be worth accumulating.

All in all, it was an educational call, not great or awesome, but perfectly acceptable.
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By: mucmara
Reply To: 99108 by NexEnd
Thursday, 18 May 2000 at 5:58 PM EDT
Post # of 99370
A Basher`s Review of the CC

It you didn`t have your hopes high for specific information, you wouldn`t come away dissapointed. Carma ran a tight ship in
the polite controled tones of a radio talk-show host. After a fairly lengthy delay during which various Fonix boosters cut up
amongst themselves, Roger Dudley showed up. Roger turned out to be articulate and predictably optimistic but less than
informative where the crucial specifics are concerned.
15 questions had been scheduled beforehand which took up almost the entire QA session. NBK and another east coast
stockbroker type got to ask most of the 15 questions (I guess they`re pals with carma1) and their thrust dominated the
inquiry: will there be more dilution? - "Yes, but we hope it can be kept to a minimum etc." Someone did ask the crucial
question about independent evaluation of Fonix`s much hyped neural-net ASR. Roger said that yes, these tests have been
done by several OEMs, but confidentiality restrictions prohibit any comments etc. There was lots of that, begging off the
question because of SEC rules and private concerns about confidentiality. Like I said , the tone was upbeat but very, very
thin on specifics which is always the case with Fonix. However I did discover a hint about what sort of product Fonix is
trying to sell.
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By: Valiant30
Reply To: None
Thursday, 18 May 2000 at 6:59 PM EDT
Post # of 99370
Now some very specific questions were asked and some answers that I did not expect were given:

Here are my take on the call and my highlights:

1. Significant revenue coming in at this point from Concierge and yes Panasonic ( not expected but welcome) but not
enough yet to sustain operation ( by the way this was a question that we were asked to skip no 13)

2. This one is the truly great one MSFT is currently working on Product both internally and with third party that will utilize
Fonix ASR and TTS. Since fonix technology is not software base this definitely is a strong indication that there will be a
long term chip manufacturer agreement in place very soon to secure any platform development, my guess is Intel since
they will be the prime supplier of chipset to MSFT product line. He did say products..........

3. PR agency they are looking at it as we speak and this an expense that they are willing to undertake even thru equity
financing, great knews.

4. Debt servicing and equity financing short term goal ie monthly is to bring cash burn rate to zero and he expects to reach
this level within twelve to eighteen months.

5. 3 to 30 Billion that is not an industry worth that is an industry sales number, at it lowest level it is 15 times larger than
L&H current sales level, try a P/E ratio on that one.

6. Competition as expected the answer is nobody else does it better (sounds like a James Bond movie doesn`t it), but
they know that it will get fierce if the market accept the products.

7. The general public is not yet accustom to working ASR application or appliance, suspended disbelief if they can
succeed in generating usage, watch out.

8. He is truly looking at a 12 month window for profit and he is consistant in his message as well as confident. The fix rate
convertible and the realisation that they have made mistakes in the past is music to my ears.

9. There was an Asia and other potential partner that he asked us to skip, feel free to talk within yourselves.

10. Lets not jump to conclusion on Pr`s tomorrow or even next week but lets agree on this they have built it and they will
come.

[Tesla 2000]

Bitte kann das jemaND in Deutscher Schrift übersetzen .

Danke euer Gnaden :-))


tesli

[Tesla 2000]

HALLO :-) Fonix(e) ...was gibts neues von der Front zu berichten ?

Wie gehts weiter mit unserem Papierchen ?

cao tesla