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Sorrento Teeters on the Edge

The past two weeks have marked another chapter in the strange history of Sorrento Networks Corp. (Nasdaq: FIBR) investor relations. The million-dollar question: Have Sorrento investors finally hit the jackpot, or are they about to lose all their money to the house?

The happy faction of investors in the networking company formerly known as Osicom is celebrating last week's surprising quarterly numbers. Shares have doubled in the past two weeks, from just under $6, to their current price of about $12. The other, more skeptical portion of the Sorrento shareholder base is looking at the balance sheet and wondering, "Where's the cash?"

The concerns come partly from a recent flap involving the company and the holders of its Series A Preferred Stock -- a class of shares that pays dividends and holds certain privileges not held with common stock. Investors holding more than half the company's Series A Preferred shares have filed to sell those shares. But all they got in return was a letter saying, in effect, that Sorrento can't pay up until it's profitable.

During the quarterly earnings conference call last week, Sorrento addressed the matter by saying it can only redeem Series A Preferred shares using specific funds, such as "positive retained earnings and capital surplus." It's worth noting that Sorrento just posted a first-quarter loss of $5.8 million, or 45 cents a share. Sorrento's revenues grew 179 percent from the year-ago quarter, but the company is still several months away from profitability (see Sorrento Announces Q1 Results).

The company's annual report, dated May 1, acknowledged the matter, saying its shareholders had the right to ask for the redemption of the Series A shares, which would be worth about $49 million. "If such request is made and [Sorrento] is found to have lawfully available funds to redeem all or a portion of such shares, it may have a material adverse affect on our business," the report states.

But is that their final answer?

Indeed, liquidity appears to be a concern. Sorrento officials say the company has plenty of cash, but it began the first quarter of fiscal 2002 with only $8.9 million in cash. That's $8.9 million left over from the total of $20 million it had last quarter -- $10 million in cash plus $10 million in funding it received during that quarter (see Sorrento Reveals Recent Investors).

Sorrento did, however, report having some $84 million in total assets for the quarter. This includes $26.9 million in inventory and $28.6 million in marketable securities, investments that could easily be sold for cash.

On the quarterly conference call, Sorrento's CFO Joe Armstrong said that the company burned through about $3.5 million a month during fiscal Q1. Light Reading confirmed with Armstrong today, through a spokesman, that Sorrento's cash burn is projected to be about the same this quarter but is expected to improve later in the year. That means, in a worst-case scenario, it could run out of cash within a couple of months and it would be forced to liquidate its investments and other assets.

The company says the answer to its liquidity problems is in a pending line of credit, said to be around $15 million, from Silicon Valley Bank. But, as of Tuesday afternoon, the company had not yet completed the process to secure that credit line.

Jim Dixon, Sorrento's chief executive, said the preferred shareholder matter was "not about not having the cash to make the [payment]. It's about being authorized by charter, by law, or by this agreement to be able to make such a disbursement." Dixon said Sorrento has hired SG Cowen Securities to work out some sort of agreement.

Sadly, the latest crisis comes just as Sorrento appears to be ramping up its product development and landing some decent customers. Its top five customers, which made up 75 percent of its sales last quarter, include AT&T Broadband, Cox Communications Inc. (NYSE: COX), Deutsche Telekom AG (NYSE: DT), United Pan-Europe Communications NV (UPC) (Nasdaq: UPCOY), and Inrange Technologies Corp.

At the Supercomm 2001 convention next week, Sorrento will host the first-ever public demonstration of its entire product line, including the firm's optical routing switch, the TeraMatrix, which isn't expected to ship until either the fourth quarter of fiscal 2002 or the first quarter of fiscal 2003.

Even as other aspects of Sorrento's business are improving, this latest inkling of financial instability comes at a time when Sorrento is trying to improve its reputation with Wall Street and convince financial analysts to begin monitoring (and, in essence, promoting) its stock. Even The Chapman Company's Joe Gladue, the lone analyst watching Sorrento now, wrote in a March 28 note that "the relatively capital-poor nature of Sorrento versus its competitors raises the risk of owning the stock."

The company cut its operating expenses to $10.7 million during Q1 from $15 million during Q4 fiscal 2001. It also cut 22 jobs -- about 8 percent of its staff -- at the beginning of this month.

Sorrento shares dropped 1.43 (10.73%) to 11.90, its lowest point since about a week ago, when news of the firm's improved earnings first broke. Over the past two weeks, Sorrento shares have gained over 100 percent, from $5. The company's shares had hit a 52-week low of $3.50 as recently as April.

- Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com
dlharding 12/4/2012 | 8:17:36 PM
re: Sorrento Teeters on the Edge Notice that they come up with hot button pushing articles. Think it has to do with ad revenue declines? Look at all of the LR house ads that cover the pages, more than half of them are for LR events, pages, or revenue generating services. Would seem to raise an honest question about LR's health and stability.

Oh no, now I am starting to sound like a LR reporter.....making trouble starting rumors and passing innuendo as the basis for my story.

Maybe we can get a quote from Clavenna....
mirage 12/4/2012 | 8:19:19 PM
re: Sorrento Teeters on the Edge Just a question, how many articles were written about employees leaving other companies. I CAN'T FIND ONE! Yet this RAG magazine decides to write an article about 2 engineers leaving Sorrento. Come on people, its fairly obvious they have a problem with Sorrento. Did they cover the Terabeam announcement? Nope. Why? Its only the hotest wireless company out there and its CEO is the former head of AT%T wireless. Oh yeah, I forgot, they picked Sorrento so why should that be news. Lightreading.com RAG RAG RAG. If Sorrento advertised with them more, I'm positive the articles would improve.

Mirage
russ4br 12/4/2012 | 8:19:45 PM
re: Sorrento Teeters on the Edge May it be that the folks at Sorrento spent so much time and energy fighting at this humble chat room that they FORGOT that SuperComm is happening next week?

Can we say "Lack of Focus" or "Not Executing" or "Keep your eyes on the ball!!!" ?????

Rephrasing the headline as one of Sorrento-¦s die-hard supporters suggested: It-¦s Break or Break-Trough ...

good luck at the show!

Russ

= = = = = = = = = = = = = = = = = = = = = = =
Previous post by lo_mein_noodles #87


Noorizen....I'm sorry to break it to you but here's the headline from the FIBR press release...

"Corning and Sorrento Networks to Demonstrate OC-192 Metro DWDM Solution at SUPERCOMM `01"

I guess this comment by you shows A)you have no idea what you are talking about, or B) Sorrento has no idea what they are demonstrating at the show?? or C) back to those series A shareholders that can't cash in their stock because Sorrento says they don't have the cash to do it...

"This demonstration of Sorrento and Corning products working together to set new standards (...error free transmission of OC-48 (2.5 Gbps) over 925 kilometers with directly-modulated lasers and without dispersion compensation) is important as it can be a compelling selling point for their respective products."

Whoop de do to the power of three...
lghtswtch 12/4/2012 | 8:19:57 PM
re: Sorrento Teeters on the Edge cfcaller: I am not concerned with negative articles by themselves - or (ex)employees that are baring their souls. However, where there are violently opposing camps, that's where I think there may be fundamental problems. Even then, I use it as one of many inputs.

LS
russ4br 12/4/2012 | 8:20:06 PM
re: Sorrento Teeters on the Edge Voyager said:

"Be it real, or imagined on my part, it still FEELS the same way."

=> Voyager, please keep in mind that it's hard for us on this message board to keep in sync with you INNER WORLD OF FEELINGS. I thought we were discussing the financial situation of Sorrento Networks - which indeed don't look very good ...

Russ
cfaller 12/4/2012 | 8:20:11 PM
re: Sorrento Teeters on the Edge Good point! I didn't think of that, that's probably a pretty good strategy...

An earlier poster (fk) mentioned how strangely similar reactions (i.e. message board flames) have occurred with negative articles about Cisco, Corvis, and Sorrento. Would you go so far as to advise to stay away from all three of these companies?

For the record, I would...
Voyager 12/4/2012 | 8:20:16 PM
re: Sorrento Teeters on the Edge Lo_mein_noodles,

No, that is not what I said. Just said that I think that Sorrento Networks, like some persons in life, are survivors. In other words, when life knocks them down, they get back up and keep on going, instead of giving up.

Let's just say also, that we have a difference of opinion here. I'm a telecom Tech, I like Sorrento's Metro DWDM product, and feel it is much better than Ciena's product (at least right now), which I've worked on.

Only think I have ever had against Sorrento, was it's management (which in all honesty, sometimes has driven me and many of the FIBR longs crazy in the past I think). HOwever, based on the last CC, Mangement seems to finally be (now) going in a positive (IE: Right) direction.

As for the NSIL shares, I don't think it will come down to that. All I meant was that if it came down to the choice of the parent company closing it's doors for good, or selling NSIL shares, they'd sell the NSIL shares.

Lastly, like I said, I differ in my opinion about Sorrento Networks than you do. It doesn't mean that your view is less valid than mine is, just that it's different. Same with the author of this article. I don't agree with some of his opinions, but the way the article is now, it is a lot more fair and IMO, less slanted in a neg way, than the first version was.

As the old saying goes, "I may not agree with your opinion, but will fight to the death for your right to say it."

I also claim that right for myself as well.

Best Wishes ....

JMHO, FWIw ....

Voyager
lghtswtch 12/4/2012 | 8:20:17 PM
re: Sorrento Teeters on the Edge Scott - Let femphoton and voyager post... their rantings and intimidation are counter-productive. If before we would not have given it a second thought, their actions will remind us longer than otherwise that maybe there is something wrong with the company they represent. I for one follow the bulletin boards to see what companies may be in trouble. Good companies don't draw attention.
lo_mein_noodles 12/4/2012 | 8:20:20 PM
re: Sorrento Teeters on the Edge So Voyager,
I guess what you are saying is, as long as Sorrento can continue to find new suckers, I mean investors, they will be around a long time. hmmmm Brilliant, just Brilliant, why didn't I think of that? Oh yeah, because Osicom thought of it first. i wonder what the new name of the company will be when they roll over again. Since you state how easy they can raise money by selling NSIL stock....why don't they do that to pay the series A shareholders that are trying to get their money back, now??
Lastly, isn't it funny how "uncanny" and "unethical" sound so much alike?
PS...I can smell a whacked out femphoton blast coming any second now....Blow fem blow!!!!
Voyager 12/4/2012 | 8:20:20 PM
re: Sorrento Teeters on the Edge Cfaller,

No, I'm not saying that one way or the other, though I don't remember seeing Mr. Gladue saying as such. However, just because I don't remember seeing it, doesn't mean I he didn't.

All I was saying, was that it appears that his views, at least now, are more positive, than what the article implies.

I also say again, to be honest here, that if the Article had come out in the form it is now, I wouldn't of been ticked off at it, like I was with the first version of it. This because while I might not of agreed with it, the addition of those few sentences, made a world of difference.

I also still don't like the title ... but heck, I'm not the author either.

Are they in a tight area in regards to money that makes them a more risky investment, yes. However, I don't feel that Sorrento Networks has a 'problem' here to the degree that the article implied, ESPECIALLY the first version of the article, which gave the impression that FIBR could close their doors and go into bankruptcy at any time. This, because of the very fact, that they can if need be, sell shares of NSIL to get cash, if it came down that.

Add to that, the very fact, that you have to admit, that Sorrento Networks (FIBR) has an uncanny knack at surviving. IMO, many other companies, when faced with the same obsticals that FIBR has faced, would of went belly up a LONG time ago. That is also why I feel that Sorrento Networks, in one form or another, will be around for the duration.

JMHO, FWIW ....

Voyager
optinuts 12/4/2012 | 8:20:22 PM
re: Sorrento Teeters on the Edge jay,
this is the sorrento circuit. perhaps the lucent board may want to benefit from your insight as well.
Jay Arthurs 12/4/2012 | 8:20:22 PM
re: Sorrento Teeters on the Edge So, Lucent wants a merger of equals instead of a purchase, eh? Why would anybody in their right mind merge with Lucent at a premium on LU stock? Where is there another telecom on the verge of bankruptcy who has enough money and is dumb enough to merge equally with Loser Lucent? If two wrongs don't make a right, do two near bankrupts make a viable, telecom company? Lucent management continues its arrogant, stupid ways. They can't see a white knight when it's poking them in the eye. A year from now they'll be begging somebody to buy them to save them from outright liquidation. LU ought to be pretty cheap by then, maybe 50 cents a share. There won't be enough assets left to pay for management's golden parachutes. By then, a merger of equals will be Lucent and their local garbage company.
Scott Raynovich 12/4/2012 | 8:20:22 PM
re: Sorrento Teeters on the Edge fernphoton--I've posted this before (Editorial Disclosure below), it's also included at the bottom of every page on our site. Please stop inferring we take positions in stocks. It is false. We don't. If you keep posting to that effect, we'll remove your posting privileges.

http://www.lightreading.com/ab...
fernphoton 12/4/2012 | 8:20:23 PM
re: Sorrento Teeters on the Edge How do we know that this is not the case - a short position in this case. Any article could move a market short term, especially if the news wires pick up the article. Additionaly, how does the SEC know if a journalist has taken a position in a stock without first investigating before they file it in your so called "circular file". Bottom line enough complaints and they will check. More misleading articles like the last regarding this company equals more complaints.
drone387 12/4/2012 | 8:20:25 PM
re: Sorrento Teeters on the Edge The SEC is only interested in journalists if they take positions in stock before publishing an article on it. Since LR doesn't move the markets, this one is going straight into the circular file.
drone387 12/4/2012 | 8:20:25 PM
re: Sorrento Teeters on the Edge >FIBR - Sorrento Network Reiterated `Strong
>Buy' at The Chapman Company

Just remember the following quote heard on Wall Street Week, "The mark of a good broker (analyst) is the ability to hype a stock while unloading it."
cfaller 12/4/2012 | 8:20:25 PM
re: Sorrento Teeters on the Edge Voyager wrote:

"This because the article (still) gives the impression that Joe Gladue, FIBR's Analyst, is 'worried' about Sorrento Networks"

So are you saying that the Chapman analyst never wrote the negative comments on 3/28, as LR claims? How do you reconcile the comments made by the analyst with the actual rating? It's possible the Chapman Company is trying to palm off some debt for Sorrento.

FYI, 'strong buy' ratings from analysts mean virtually nothing. I know that sounds weird, but it's true. Investors should pay attention to what the analysts say in their comments, not their overall rating.

For example, I believe there are still 2 or 3 analysts who have positive ratings on Winstar, a bankrupt company. Most of the analysts simply went from 'strong buy' to dropped coverage, but there are a few idiots out there who probably forgot to drop the coverage.

The investment environment somewhat prevents analysts from actually posting neutral or negative ratings on a stock, but analysts do try to cover themselves with their comments. I would actually commend LR for digging in a little bit on this.

Aren't we all just pissing in the wind, though? Isn't the bottom line still that Sorrento has a liquidity problem, or at the very least, a liquidity concern? Or maybe you'd prefer 'liquidity issue'? How would you summarize Sorrento's liquidity status? A buying opportunity?
fernphoton 12/4/2012 | 8:20:28 PM
re: Sorrento Teeters on the Edge If Phil Harvey's article is in compliance with the SEC then he's got nothing to worry about. If he gets in hot water over it - he's the idiot, he wrote it. If you don't understand that then to find the idiot, look no further than the mirror.
I'm willing to bet you work for Lightreading and thus your take.
I'd rather be baby seal clubbi 12/4/2012 | 8:20:29 PM
re: Sorrento Teeters on the Edge Whoever wrote the post I am replying to (fernphoton) is an idiot.

Sorry, had to be said.
Voyager 12/4/2012 | 8:20:32 PM
re: Sorrento Teeters on the Edge No, not really. This because the article (still) gives the impression that Joe Gladue, FIBR's Analyst, is 'worried' about Sorrento Networks, or feels that (in apparent agreement with the author), that the company could go belly up soon.

here:

"Even The Chapman Company's Joe Gladue, the lone analyst watching Sorrento now, wrote in a March 28 note that "the relatively capital-poor nature of Sorrento versus its competitors raises the risk of owning the stock."


What I posted, was a PR that came out last night, that IMO, says otherwise.

Strong Buy rating, does NOT IMO, sound like Mr. Gladue feels that the company is about to go belly up anytime soon.

JMHO, FWIW ....

Voyager
lo_mein_noodles 12/4/2012 | 8:20:38 PM
re: Sorrento Teeters on the Edge Noorizen....I'm sorry to break it to you but here's the headline from the FIBR press release...

"Corning and Sorrento Networks to Demonstrate OC-192 Metro DWDM Solution at SUPERCOMM `01"

I guess this comment by you shows A)you have no idea what you are talking about, or B) Sorrento has no idea what they are demonstrating at the show?? or C) back to those series A shareholders that can't cash in their stock because Sorrento says they don't have the cash to do it...

"This demonstration of Sorrento and Corning products working together to set new standards (...error free transmission of OC-48 (2.5 Gbps) over 925 kilometers with directly-modulated lasers and without dispersion compensation) is important as it can be a compelling selling point for their respective products."

Whoop de do to the power of three...
Noorizen 12/4/2012 | 8:20:39 PM
re: Sorrento Teeters on the Edge "what does that have to do with customers?
Corning is a supplier."

Sorry to break it to you. But, actually Corning is not a supplier to Sorrento. Both Corning and Sorrento are suppliers to service providers - the customers.

This demonstration of Sorrento and Corning products working together to set new standards (...error free transmission of OC-48 (2.5 Gbps) over 925 kilometers with directly-modulated lasers and without dispersion compensation) is important as it can be a compelling selling point for their respective products.

whoop-de-do to the power two...

NormBehave 12/4/2012 | 8:20:40 PM
re: Sorrento Teeters on the Edge with a 500 year long term target XXX...:-)
This is really funny usage of message board to pass away all this kind of bullshit!
Voyager 12/4/2012 | 8:20:41 PM
re: Sorrento Teeters on the Edge FIBR - Sorrento Network Reiterated `Strong Buy' at The Chapman Company
By Lindsey Mackay

Princeton, New Jersey, May 30 (Bloomberg Data) -- Sorrento Networks Corporatio (FIBR US) was reiterated ``strong buy'' by analyst Joseph Gladue at The Chapman Company. The 12-month target price is $30.00 per share.





Access More Information and Services Above

http://quote.bloomberg.com/fgc...
flanker 12/4/2012 | 8:20:43 PM
re: Sorrento Teeters on the Edge what does that have to do with customers?

Corning is a supplier.

whoop-de-do.
Voyager 12/4/2012 | 8:20:46 PM
re: Sorrento Teeters on the Edge Since Chapman, Sorrento Networks' Analyst, was mentioned in the article, I thought I'd post this here:

By: taylor_41 $$$$
Reply To: None Thursday, 31 May 2001 at 9:49 AM EDT
Post # of 82187


Chapman update... Will post more later...

Sorrento Networks (FIBR) reported solid revenue growth (18.5% sequentially)
and much lower operating loss for its 1Q02 ended April 30. Due to an
uncertain spending environment among its telecom carrier customer base, we
are reducing our revenue estimates for FY02. However, due to lower expense
projections, we are also reducing our loss per share estimate. We maintain
our $30 price target and Strong Buy rating for risk tolerant investors.


(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Buy)

http://news.moneycentral.msn.c...
fernphoton 12/4/2012 | 8:20:52 PM
re: Sorrento Teeters on the Edge "...so if you can't just hold on and take your satisfaction from the company's performance proving the pundits wrong, you don't belong in the market."

Glad you agree that Sorrento is a company with potential for share growth through performance, and not "teertering on the edge". Didn't sell a share, matter of fact increased position. I don't believe a thing this rag spouts out and it's because of crap like Mr. Harvey produced 2 days ago. Problem is some people don't know better. He's not an analyst. He's a journalist and I'm using the term loosely.
As far as the SEC goes, Lightreading deserves it.
EVERYTIME I see something as ridiculous as this article regarding Sorrento or whomever, I may contact the SEC. As for Lightreading - Be a little more responsible - unless you want to become known as "The National Enquirer" of fiber optic websites.
fk 12/4/2012 | 8:20:55 PM
re: Sorrento Teeters on the Edge ... but the SEC is getting a copy of the original.

BFD. It is amusing how important you think you are. Do you really think the SEC is going to launch a full investigation on your say so? Like a previous poster said, you are an object lesson in why investors of a certain mindset should not invest in individual securities. Pulling on mommy's apron every time someone says a cross word about one of your beloved investments is just plain silly. We're not talking about Abby Joseph Cohen here. Nobody here moves markets perceptibly, so if you can't just hold on and take your satisfaction from the company's performance proving the pundits wrong, you don't belong in the market.
fernphoton 12/4/2012 | 8:20:57 PM
re: Sorrento Teeters on the Edge So your broke, your company is collaborating to make supper, and Phil Harveys' updated his "article", but the SEC is getting a copy of the original. What's your point?
Lopez 12/4/2012 | 8:20:57 PM
re: Sorrento Teeters on the Edge > Not bad for a company who according to Phil
> Harvey and R. Scott Raynovich of
> Lightreading.com, is "teetering on the edge" of
> bankruptcy.

Big deal, me and my company (a guest) are currently collaborating with Corningware to make supper, that still doesn't change the fact that we're broke.
fernphoton 12/4/2012 | 8:20:59 PM
re: Sorrento Teeters on the Edge Not bad for a company who according to Phil Harvey and R. Scott Raynovich of Lightreading.com, is "teetering on the edge" of bankruptcy.
olsons 12/4/2012 | 8:21:00 PM
re: Sorrento Teeters on the Edge or you could just go away.
Voyager 12/4/2012 | 8:21:01 PM
re: Sorrento Teeters on the Edge FYI ... they've changed the article, you should of seen the first version.

Here is a link to it (in it's orginal form) on the RB, as it was posted this morning:

http://ragingbull.lycos.com/mb...

To be honest, at least for me, while I might not totally agree with the 'slant' of the current version of this article, I could of lived with it (the current version that is).

You are right ... if someone reads the article as it stands now, the one that was updated at about 11:30 ET today, then reads our comments, well they might have problems seeing why we were so ticked off.

However, as you can see, once you read the first version, and the current one, it's Amazing just how a paragraph inserted into the article, and a few lines here and there, can change the article, towards one that is more fair, and less slanted (from the original), in my opinion that is.

JMHO, FWIW ....

Voyager
fk 12/4/2012 | 8:21:02 PM
re: Sorrento Teeters on the Edge This is like the attack of the {Corvis, Cisco} investors all over again. The shareholders come off looking like kooks here (a fairly typical occurrence when the vituperation against an analysis zooms into accusations of bias, collusion, etc.) Don't you guys (and gals!) ever learn? Frothing at the mouth is no way to convince impartial observers of your correctness. I didn't find the article to be so terribly slanted, and while I don't think that "2-3 months" is all that Sorrento ultimately has left, I can "do the math". This reaction was entirely uncalled for, based in emotion rather than thoughtful analysis, and reflects more on the attack shareholders than the author of the article at point.
fernphoton 12/4/2012 | 8:21:02 PM
re: Sorrento Teeters on the Edge That's your opinion, and it's worth what I paid for it.
edzed 12/4/2012 | 8:21:05 PM
re: Sorrento Teeters on the Edge I have. I am talking about real telcos like Deutsche Telecom and UPC. Their only real problem was with the management features and any remaining concerns have been eliminated with TeraMan.

The product is telco grade and has more blades than any other product on the market. How many vendors are shipping 10G Ethernet?

TeraMatrix, their wavelength router, far surpasses anything we have seen from ONI. That is not a knock on ONI.

Ciena and other large vendors have tried to turn their dumb long haul DWDM into smart and flexible metro systems.

Please tell me something specific that shows that Sorrento is not all that.
Voyager 12/4/2012 | 8:21:05 PM
re: Sorrento Teeters on the Edge Cfaller, in effect called me a Man in that particular posters post here:

"(Voyager's words, I'm not sure what he means) "

Like I said, I just wanted a fair story was all, and NOT one that was IMO, slanted to the negative like the FIRST version of the story was in my opinion.

JMHO, FWIw ....

Voyager
lo_mein_noodles 12/4/2012 | 8:21:05 PM
re: Sorrento Teeters on the Edge "Femphoton is teetering on the edge"....as hard as she tries she just cant seem to open the Prozac bottle!!! Voyager....I don't think they called you a man...they were talking about a MAN (metro area network)...be proud of your boobs...don't be one!!!
As for the thread...BRAVO Steve & Phil...I think I would be pretty mad if I tried to cash in my "series A" and the company says....ummmm..no...not right now, we don't seem to have the cash available....I really think that is a fairly telling tale...then Sorrento supporters run to the notion of "we have "x"million in that stock netwhatever ?? well, cash it in and pay the poor people who want their money!!
And back to lil femphoton....if you spent one tenth of your time actually working at your job at Sorrento and not wasting the SEC's time...maybe, just maybe Sorrento could move more product out the door! That would solve all of FIBR's problems. Geeeesh!!!
Voyager 12/4/2012 | 8:21:06 PM
re: Sorrento Teeters on the Edge Networks at Supercom, just came out on the wires here:

Wednesday May 30, 3:10 pm Eastern Time
Press Release
Corning to Showcase Multiple Metro DWDM Solutions Operating Over MetroCor Optical Fiber at SUPERCOMM
CORNING, N.Y.--(BUSINESS WIRE)--May 30, 2001--Corning Incorporated (NYSE:GLW - news) announced today that it will collaborate with a number of systems houses at SUPERCOMM 2001 in Atlanta, Georgia, June 5-7 to highlight state-of-the-art metro DWDM solutions demonstrating Corning-« MetroCor(TM) optical fiber's exceptional system compatibility. Collaborating systems houses include: Astral Point(TM) Communications, Incorporated; Cisco Systems, Incorporated; ONI Systems Corporation; and Sorrento Networks Corporation. The demonstration will be available to attendees during exhibition hours in Corning's booth (#3022).

Curt Weinstein, director, Metro Fiber at Corning Incorporated noted, ``As metropolitan networks continue to grow, Corning is increasing its focus on MetroCor fiber's interoperability with a variety of systems. Each of the participating systems houses in this collaborative demonstration has been selected as a strategic provider of metropolitan technology. The SUPERCOMM display speaks directly to our ability to provide a total solution tailored to specific customer needs as we address the increasing need for bandwidth in metropolitan areas.''

MetroCor fiber meets the telecommunications industry's needs by enabling metropolitan networks to carry high-density data traffic while reducing complexity and network costs. Allowing for a seamless transition from standard to higher data rate applications, MetroCor fiber is compatible with single-mode fibers. By reducing the electrical regeneration and dispersion compensation required to maintain signal integrity, MetroCor fiber directly addresses the significant bandwidth growth rate that metropolitan areas and private enterprise networks are currently facing.

In addition to the demonstration, a Corning presentation entitled, ``Unleashing Metropolitan and Regional Bandwidth: MetroCor(TM) Optical Fiber'' will be presented at the SUPERCOMM Exploration Theatre on Wednesday, June 6 at 2:20 - 2:55 p.m. The presentation will address the metropolitan bottleneck, examine economic value and case study results, and present evolving metro networks solutions.

About Corning

Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 2000 were $7.1 billion.


--------------------------------------------------------------------------------
Contact:

Corning Media Contacts:
M. Elizabeth Dann, 607/974-4989
[email protected]
Debbie Stayer Kelly,607/974-8278
[email protected]
or
Corning Investor Relations Contact:
Katherine M. Dietz, 607/974-8217
[email protected]


Email this story - Most-emailed articles - Most-viewed articles

http://biz.yahoo.com/bw/010530...
^Eagle^ 12/4/2012 | 8:21:06 PM
re: Sorrento Teeters on the Edge looks to me that you are pretty alone in your opinion...there are only about 3-4 of you expressing it....all Sorrento stockholders.

Sounds pretty desperate. And remind yourself...ATT broadband is NOT ATT long haul or metro transport. It is the cable tv portion of ATT... this ex time warner group is long notorious for deploying inferior technology ....just get something out there. And for transport on the cable network...mostly you are carrying analog tv signals over multiple wavelengths with pretty broad channel spacings...200G... so performance is a minimal issue. Also, sometimes ATT broadband deploys this stuff as a way to deliver "dim" fiber to some large end users in campus or enterprise applications. Very vulnerable to the Cisco/Microsoft effect. IF Cisco put a simple DWDM card in it's routers and edge switches, Sorrento would lose a significant share of it's revenue. Same for other providers of enterprise data systems.

IF Sorrento had really won a significant telecomm contract.....it would by itself be well over 100m annually...they in total only have 140M market cap with MUCH smaller annual revenues.

So get real. Take your profits when the stock is up and be happy you made a little. This is not a company worth getting missionary over. Just a niche player with some reasonable cash flow and moderate success possibilities. This is not bad....making good incremental business is considered a success by most of us in telecomm. But this is NOT a "home run" play. See it for what it is and take your blinders off.

sailboat
Voyager 12/4/2012 | 8:21:07 PM
re: Sorrento Teeters on the Edge Someone on these message boards, gave the example of someone being kicked in the shins 10 times ... and I think that was/is a lot of it.

It wasn't so much to do with the stock, the company, or the money, at least for me ... it's the whole principle of the thing, at least it is/was for me.

I got really torked off, because I saw it as yet another one sided slanted, attack (in my opinion) against FIBR. Be it real, or imagined on my part, it still FEELS the same way. You see, integrity and more importantly, FAIR play, is something VERY important to me, especially for things in PRINT. IMO, I just didn't see it in the first article.

Keeping in mind, this HAS been done to FIBR shareholders before, and if I remember correctly, I WAS proven to be a connection before. If not for the shorts, if not for the Class A holders, I was at a loss to know why they would put out such (IMO) an 'article' (the first one) slanted so negative towards the company, in the first place.

BTW I am a WOMAN, and NOT a man, and am NO freckled face kid either. Why is it that everyone assumes that someone who is in the stock market is a MAN, hmm?

Lastly, IR was indeed VERY interested in what I had to say, and what I sent to them.

Like I said, to me FAIR play is VERY important, and the 'new and improved' article, is at least, an improvement over the first version of it.

JMHO, FWIw ....

Voyager
^Eagle^ 12/4/2012 | 8:21:08 PM
re: Sorrento Teeters on the Edge Sorrento's products are NOT a match for any of the serious metro DWDM players out there. Lets be real, most of Sorrento's sales have come from sales into the enterprise or campus space...NOT regional or metro transport for telecom carriers. The carrier sales they have made have all been for those carriers to resell through the systems integration side of carriers into campus or enterprise networks. Some carriers that have bought for transport applications are distant Teir 3 players who needed something cheep.

Sorrento, while with a nice product, is not a match for Cienna Metro, ONI, Nortel Metro, Fujitsu Metro DWDM, Tellabs, or many of the startups.

I do like the sorrento product...they do have real customers and revune...but lets be real. It is NOT today a telecom grade system. Sorrento is working to change that....hence new product announcements and demos at SuperComm to raise their profile....with vapor ware product that won't be available until mid '02 at best.

sailboat
edzed 12/4/2012 | 8:21:09 PM
re: Sorrento Teeters on the Edge I would love to see an article on Adva's financial situation. They had 1.1MM Euros in cash and 5.8MM Euros in working capital as of the end of Q1. They lost 3.5MM Euros.

I do not know what kind of line of credit they have in place so I am not sure whether they are "teetering" or not.

But their results have been awful lately. Q1 revenue of 18.3MM Euros was down 10% sequentially and little changed from 17.3MM in Q2 of 2000.
fernphoton 12/4/2012 | 8:21:09 PM
re: Sorrento Teeters on the Edge I couldn't care less about your opinion of my "rant". The article is what it is and I'm not alone in my opinion. If Light Reading keeps printing these type of inaccuracies I'll keep pointing them out. To the SEC, IR or whoever..
Milano 12/4/2012 | 8:21:09 PM
re: Sorrento Teeters on the Edge cfaller's right. fernphoton, you must be writing from Yemen, there is something called free speech in this country. The article may be incomplete, but the bottom line is right: there is a serious cash flow problem.

Rather than calling SEC, what about telling us who's gonna throw more cash in the business so that there is a Xmas party at Sorrento.

Milano
NormBehave 12/4/2012 | 8:21:09 PM
re: Sorrento Teeters on the Edge Osicom's tracking record worth more than cashes alone!
It is funny to look into this message board..Well, critisizes and disputes for a company if she really wants to grow in a normal way...
It's really wierd here...and it really smells smoky...Well, time for me to bypass this message board from now on...
cfaller 12/4/2012 | 8:21:10 PM
re: Sorrento Teeters on the Edge It occurs to me that perhaps Voyager and fernphoton are examples of why certain people shouldn't invest in individual stocks, and should just put their money in a mutual or money market fund. Such emotional involvement in the performance of a stock can't be healthy.

I'm sure the SEC and Sorrento's IR yawned at the complaints that were 'reported' by these two. Is there really any basis behind the accusation that LightReading is performing a 'raid' (Voyager's words, I'm not sure what he means) on poor little Sorrento? Or that the editors have a short position on FIBR? Or better yet, that fellow investors in FIBR have a vested interest in keeping the price below $13.11?

Your precious FIBR stock isn't performing the way you wanted to...it must be because it's all ONE BIG CONSPIRACY! And, since I don't agree with your paranoid point of view, maybe I'm in on it, too! Yeah, that's the ticket!

Voyager and fernphoton, your rants are paranoid to the point of being comical, so thanks for making me laugh. But your rants are also annoying and illogical, which takes away from the value of these message boards. Please do us all a favor and put your money in US treasuries.

Just so we're clear, I don't have any position in Sorrento or in any Sorrento competitor.
edzed 12/4/2012 | 8:21:10 PM
re: Sorrento Teeters on the Edge Thanks for balancing out the article. The reason we get so mad is that we expect a high standard from you.

Please excuse all of the ranting Sorrento shareholders. There is a well documented history of negative bias against the company driven by short sellers.

If you have been kicked in the shin ten times and then someone brushes up against you - you attack them.

I can't wait for the day when Dr. Xin Cheng and his team get some respect.

By the way, did anyone see Adva's lousy results that came out yesterday? www.advaoptical.com. Adva's revenue has not grown much in the last 3 quarters and was down 10% sequentially.
Anasazi 12/4/2012 | 8:21:12 PM
re: Sorrento Teeters on the Edge .....for reinding me that my subscription to "Weekly World News" has expired!
Noorizen 12/4/2012 | 8:21:13 PM
re: Sorrento Teeters on the Edge OK, time to put our silly hats on...

"Talking of assets, I've been told that Sorrento's most valuable asset is its ticker symbol: FIBR.

"I imagine quite a lot of optical companies would want to purchase it."

"True?"

That was very funny!!! Thanks for lightening things up.

On a serious note though. As bad as things are for the optical companies, there may not be many companies out there that can afford to buy the symbol "FIBR" from Sorrento even if it was available.
Steve Saunders 12/4/2012 | 8:21:13 PM
re: Sorrento Teeters on the Edge Phil, re: "Watch your step, fools."

I suspect this was sent by Mr T.

--Steve


This one sent in by [email protected] The sender cc'd just about everyone at Lightspeed Venture Partners, too.

"Another hack job. You people are very similar to the nickle-a-post message board stock bashers except you're a little more organized with a website and a focus on a specific industry.

Similarities include a) clear attempt
to manipulate stock, b) obvious disregard for facts, c) blatant aggregation
and transformation of small, potentially inconsequential negatives into
"the end of the world", d) poor, sensationalistic writing style and e) a general, overall lack of professionalism and integrity. These things define you as an organization and as people. How embarrassed I'd be if I were you.

By the way, I have apprised my SEC contact of your shenanigans. I suggested there may have been some communication between your organization and
Sorrento's Series A Preferred shareholders.

Interestingly, he indicated they were already aware of the possibilities there. Watch your step, fools."

Noorizen 12/4/2012 | 8:21:14 PM
re: Sorrento Teeters on the Edge Mr. Harvey,

Thanks for making modification to your story. This now provide better and more complete information on the finances of Sorrento:

"Sorrento did, however, report having some $84 million in total assets for the quarter. This includes $26.9 million in inventory and $28.6 million in marketable securities, investments that could easily be sold for cash."

"That means, in a worst-case scenario, it could run out of cash within a couple of months and it would be forced to liquidate its investments and other assets."

Keep up the good work. I hope to read about Sorrento's full-feature full-scale demonstration of their end-to-end all-optical solution at the Supercom.
Steve Saunders 12/4/2012 | 8:21:15 PM
re: Sorrento Teeters on the Edge Re: Say what you want Mr. Saunders

Thanks -- I will!
fernphoton 12/4/2012 | 8:21:15 PM
re: Sorrento Teeters on the Edge Fact is this is one in a series of articles with an obvious negative bias toward this company. Keep posting this type of slanted journalism and I'll getting posting my thoughts.
DCITDave 12/4/2012 | 8:21:15 PM
re: Sorrento Teeters on the Edge also sent anonymously:

"Phil,

YOU HAVE A HISTORY! YOU ARE GOING DOWN!

You seem to be completely missing my point - and yes it is because you are still offering those Napster-dotcom style arguments. Have it you way.

Fact is cretin or not your readers make this magazine's payroll happen. They have a RIGHT to expect (a) fairness in reporting, (b) accuracy in reporting, and (c) professionalism in reporter's conduct.

Accuracy was what the first poster Ozyrainbow was pointing out.

Fairness is what bcbothun was pointing about.

Professionalism is what I am talking about.

You have missed the boat on all three. You can spin your words as much as you want about free world and all of that.

Flaming someone here is not the same as flaming them on any other independent message board. Time will tell who is a cretin..."
DCITDave 12/4/2012 | 8:21:15 PM
re: Sorrento Teeters on the Edge from my in-box this morning, sent anonymously:

"Phil Harvey

You call yourself a journalist. I have contacted the various newspapers and will have you exposed.

You and your rag magazine have finally given us proof. I have also contacted the CFO of Sorrento to confirm your quote. If it doesn't. Well you know what will happen."
Steve Saunders 12/4/2012 | 8:21:16 PM
re: Sorrento Teeters on the Edge bluey --

Finally someone on this board that gets it.

Cheers

Steve
bluey 12/4/2012 | 8:21:16 PM
re: Sorrento Teeters on the Edge Okay, so what we're saying here is that if an article is positive, then it's honest and truthful. But if it's negative, then it's SLANTED! Who are you accusing of being biased??

Like he said...he provided analysis. You can quibble about how much cash FIBR has left. That seems reasonable. But rather than throwing a freakin' HISSY FIT, try seeing the big picture. They are running. out. of. cash. They are cash. flow. *negative*.

I don't own any shares, and didn't know about this company until I started reading this hilarious thread. If you really think they're such a rockin' company and that they've got great products and eager customers, then why are you flipping your lid over some stupid little article by some relatively unknown journalist?? Do you honestly think that Scott has that much power over the share price? If so, you're too emotionally attached to this company. If their prospects are really as bright as you think, then you can relax in the knowledge that it'll all work out in the end for them and can come back here later and rub Scott's nose in it. Until then, you're doing FIBR no favors by crying to big daddy SEC.
gea 12/4/2012 | 8:21:17 PM
re: Sorrento Teeters on the Edge I agree with Bluey. A lot of you sound like real wackos, sorry to say. Look, if it were controversy-free, totally un-angled writing, it would be boring, and no one would be bothering to discuss it. That's just the way ALL journalism in this country works. if you want to point out factual problems, fine, but don't think they're goping to remove all trace of angle just so you all don't get red in the face. Let's face it: that's what keeps you coming back!

And let's remember, this is a website. How do you really know it's even trying to be objective? For all you people know this is actually written by some teenager in Hohokus (that's NJ) manipulating stock prices. Somehow, I think if that were true half of you wouldn't be so upset, you'd just ignore this site. Look, go take a valium, a deep breath, and nice, long nap. In the morning you'll feel better, I promise!
fernphoton 12/4/2012 | 8:21:17 PM
re: Sorrento Teeters on the Edge The SEC is still going to get a copy of the original article by Mr. Harvey.
fernphoton 12/4/2012 | 8:21:18 PM
re: Sorrento Teeters on the Edge It doesn't matter if Sorrento's market cap is a buck or 10 billion. Irresponsible jounalism is irresponsible journalism. This rag seems to have a history of this kind of stuff, and I'm going to let them know how I feel everytime.
Voyager 12/4/2012 | 8:21:18 PM
re: Sorrento Teeters on the Edge You don't understand, this kind of 'journalisim' has been done to FIBR and it's shareholders before ... back in 1999. PLUS IMO, they are giving the impression that in 2-3 months, FIBR will close it's doors. Heck, even Scott Raynovich, in his reply to me, states that the 'CFO himself says they are 2-3 months from running out of money'. His words, NOT mine.

We are FUMING here, because of what we feel, is a below the belt attack, with what are, in my opinion, half truths, or rather, in my opinion, half omissions, in the original article.

Admit it .. the article is SLANTED in a Neg way, period, especially in my opinion, the orignal version. It started off that way, and kept on going in that direction from the title all the way to the end.

I see they've modified the article now, took out the 'only have a few months left' part, and changed it to:

"Sorrento did, however, report having some $84 million in total assets for the quarter. This includes $26.9 million in inventory and $28.6 million in marketable securities, investments that could easily be sold for cash. "

and also added:

"That means, in a worst-case scenario, it could run out of cash within a couple of months and it would be forced to liquidate its investments and other assets. "

I know, I have the HARD copies of the FIRST version of the article to go by.

Also, an FYI for you ... FIBR shareholders are a VERY tightknit group, and tend to stick together as well. We don't cotten to this kind of treatment either.

People tend to forget, when you attack a company, you attack it's (long) shareholders at the very same time.

Some (most really) companies shareholders will just panic and sell off, others companies shareholders, will get fighting mad, and fight back like an angry swarm of bees, who have had their nest disturbed by a 'bear' trying IMO, to perform a raid on them.

Guess which group FIBR shareholders belong to??

If the article had from the beginning, been put forth in a fair mannor, we most likely could of lived with any 'hard facts' in it.

However, IMO, especially the FIRST version of the article, I felt that In my Opinion, it was VERY much slanted AGAINST FIBR.

Just My Honest Opinion, For What It's Worth ....

Voyager
voyeur 12/4/2012 | 8:21:18 PM
re: Sorrento Teeters on the Edge Considering that the posts to this article dominates the "Last 10 Posts" and has more posts than the Kestral article, why isn't there a link under "Article Chat"?

I tend to side with LR considering journalistic integrity, but this is a little troubling. Are you trying to draw attention away from this issue?
RND 12/4/2012 | 8:21:19 PM
re: Sorrento Teeters on the Edge Interesting take bluey.

Sorrento has $13 million in trailing quarter sales where ONIS has $45 million. 3 1/2 times as much sales. ONIS market cap is $4.22 billion or 29 times as much. Take out ONIS cash and it is still 22 times as much.

If you believe your post that Sorrento is "worth" $142 million, I imagine you should be short ONIS in a big way.

Sorrento has liquidity issues. ONIS does not. This publication, more than others, tends to pay precious little attention to product or customer specifics of any particular company and follows the wall street line who is "good" who is "bad" and whether stock prices are going up or down.
Voyager 12/4/2012 | 8:21:19 PM
re: Sorrento Teeters on the Edge Interesting indeed, and I have the hard copies of the original to compare it to, as well, which is how I noticed.

JMHO, FWIW .....

Voyager
bluey 12/4/2012 | 8:21:20 PM
re: Sorrento Teeters on the Edge Well You gotta give Steve Saunders credit for at least having a sense of humor. :) I think he was trying to bait you into including their NASDAQ symbol as something they could sell off to stay in business, like their shares of NSIL. Frankly, I think you need a sense of humor when dealing with a bunch of fuming readers who are blowing a gasket over a little article about a company with a $142 million market cap. Based on what you all agree was said in the conference call, how in God's green earth can you disagree that they have liquidity problems? Okay, so maybe they have 6 months of cash left if they burn through their bank account, their NSIL shares and their NAZZ symbol, rather than 2 to 3. Big whoop! It's a riot seeing these people screaming "I'm gonna tell DADDY you said something NASTY about FIBR!" You're having an aneurism over a company worth $142 million!! Get a grip!
fernphoton 12/4/2012 | 8:21:20 PM
re: Sorrento Teeters on the Edge So what's your point? Or is this your attempt at humor? If you are indeed the editor of this publication and that's the best response you have to this article, then that answers the question as to why this rag has a history of tainted journalism based on poor research and irresposible, unethical reporting.
fernphoton 12/4/2012 | 8:21:21 PM
re: Sorrento Teeters on the Edge What's your point?
Voyager 12/4/2012 | 8:21:21 PM
re: Sorrento Teeters on the Edge YOU said, in YOUR message this, and I quote:

"Author: Scott Raynovich Number: 2
Subject: Re: You sure seem have it 'in' for Sorrento, don't you? Date: 5/29/2001 8:07:52 PM


Voyager,

The CFO himself says they are 2-3 months away from running out of money. That is a factual statement. Can the picture be any clearer?

The story also points out that preferred Series A investors are asking for their money back. Seems like a fairly important statement of fact to me.

"Teeters on the Edge," (my head) is meant to convey the delicate sense of balance between the two possibilities of turning profitable and running out of money (hence, "The Edge"). How is this not an accurate description of what's going on ? It's all in the financials. You just have to add up the numbers--they do the analysis themselves. "

------
YOU said that the CFO said that the company only has 2-3 months cash, not that according to YOUR figures. In other words, YOU claimed that in effect, Joe Armstrong, the CFO TALKED to you guys, and told you that they only had 2-3 months cash. Further, the article gives the impression that your 'reporter' actually talked to Mr. Armstrong himself, and 'confirmed' this as fact.

So, my question is, did your 'reporter' actually speak with Mr. Armstrong or not? Also, why didn't you guys include the cash that Netsilicon brings to the table?

FYI ... IR guy I spoke with this morning, said that the parent company does indeed have enough cash to make it, plus especially when those shares are counted into the mix.

Like I said, YOU said that the CFO himself (your words, not mine) actually said that they only have 2-3 months cash left.

Tell me, where in print or on the CC did he say that please? Have you or your reporter actually spoken with Mr. Armstrong BEFORE the article, and after the CC?

Answer me those questions please.

JMHO, FWIW ....

Voyager

P.S. While NSIL shares are not cash, they could be redeemed as cash, should the parent company need them to fall back on.
RND 12/4/2012 | 8:21:21 PM
re: Sorrento Teeters on the Edge Wow. If you really are Steve Saunders the author for LightReading, then you guys don't even TRY to appear unbiased, do you?

A slap like that post tells the whole story.
RND 12/4/2012 | 8:21:22 PM
re: Sorrento Teeters on the Edge "but it began the first quarter of fiscal 2001 with only $8.9 million in cash. "

The just ended quarter was 2002.

You did not have any trouble knowing that when stating:

"TeraMatrix, which isn't expected to ship until either the fourth quarter of fiscal 2002 or the first quarter of fiscal 2003."

I find the contrast in grammatical usage stands out:

About cash:
"could run out of cash within a couple of months."

About products:
"isn't expected to ship until either the fourth quarter of fiscal 2002 or the first quarter of fiscal 2003"

Consistent usage would be:
"TeraMatrix IS expected to ship in 6 to 9 months"

Steve Saunders 12/4/2012 | 8:21:22 PM
re: Sorrento Teeters on the Edge Talking of assets, I've been told that Sorrento's most valuable asset is its ticker symbol: FIBR.

I imagine quite a lot of optical companies would want to purchase it.

True?

fernphoton 12/4/2012 | 8:21:23 PM
re: Sorrento Teeters on the Edge I just spoke with the SEC and was told to forward a copy of the article and my thoughts regarding it. Their address is :
SEC
450 5th St. NW
Washington, DC 20549-0213
ATTN: Branch Chief

There phone number is 202-942-7040. I encourage everyone here to phone or write them regarding this article.

Milano 12/4/2012 | 8:21:23 PM
re: Sorrento Teeters on the Edge "NSIL shares are not cash, nor are they as liquid as cash"...help me figure that one out!!

M.
Scott Raynovich 12/4/2012 | 8:21:24 PM
re: Sorrento Teeters on the Edge My final communication:

* CFO said the burn rate is $3.5 million per month, this quarter.

* At end of last quarter they had $8.9 million in CASH. That means, at the current burn rate they will run out of cash in 2-3 months.

* NSIL shares are not cash, nor are they as liquid as cash.

* After reading the article again I find it very balanced.
fernphoton 12/4/2012 | 8:21:24 PM
re: Sorrento Teeters on the Edge You were asked by several to post a link or excerpt from the conference call. It is obviuos by the tone and title of this so called piece of journalism that the intent was to imply that Sorrento was "teetering" on the brink of bankruptcy due to these liquidity issues. When in truth they have $35 million in NSIL shares which certainly keep them from "teetering" on the edge as this article states.
edzed 12/4/2012 | 8:21:25 PM
re: Sorrento Teeters on the Edge Read post #23
Voyager 12/4/2012 | 8:21:25 PM
re: Sorrento Teeters on the Edge Mr Raynovich, you still have not answered my question(s) though.

1)WHERE did Joe Armstrong, as you alleged in an earlier post, and that was in the article, state that the company was going to run out of money in 'a couple of months' or as you put it, 2-3 months?

2) Why didn't you include the fact of the millions of NSIL shares that Sorrento Networks (FIBR) owns? Just that fact would show, that if need be, they could always use those (shares) for more funding if they chose to.

Lastly, I can do my own math, thank you very much. I also listened to Conference Call ... all of it here:


http://www.corporate-ir.net/ir...

, and not just bits and pieces of it ... did you, did your 'reporter' listen to it?

I have NO problem with someone stating the risks of owning Sorrento Networks. In fact, one person who commented here:

http://www.lightreading.com/bo...

Did IMO, a very fair job of it. Where *I* get ticked off, is at the apparent, way that the article is in my opinion, slanted against Sorrento Networks, starting with the Title, and going downhill in my opinion, from there.

No friggen way is Sorrento Networks 'Teetering...' (which implies they are about to bite the dust by the way) '.... on the edge'.

Such a title in my opinion, sets up the piece, and the tone, of the article, in a very NEG way. It sets a mental picture of a company about to go off of a cliff into an abyss.

Also, BTW, someone can not own a SINGLE share of a stock, and STILL have a grudge against it.

Last question, you guys wouldn't know anyone in the preferred's group, personally, would you?

JMHO, FWIW ....

Voyager
Scott Raynovich 12/4/2012 | 8:21:25 PM
re: Sorrento Teeters on the Edge Voyager: Why don't you do your own math. You get angry when we do it.

Our analysis was that this company has liquidity issues. That's what we do--we provide analysis. If you don't think this is true, you are welcome to do whatever you want with Sorrento shares.

As stated before, we do not own any position in the stocks we cover.
Voyager 12/4/2012 | 8:21:26 PM
re: Sorrento Teeters on the Edge FYI .. it was on Yahoo and NOT the RB, and I found it rather interesting, that when I didn't reply to you right off, that your message appeared over there.

I listened to the CC, and thus, I still want to know ... WHEN did Sorrento Networks say they only had 'a few months left' as was aluded to in Mr. Harvey's article, hmm?

You guys are giving the impression that Sorrento Networks could close their doors any minute now. Plus, your 'reporter' said NOTHING about the fact of the millions of shares of Netsilly they (Sorrento Networks) own either!


I see as well, from here:

http://www.lightreading.com/ab...

R. Scott Raynovich
Executive Editor (New York)
[email protected]
212-925-0020 x103


That you are the Executive Editor, and that you WORK for lightreading.com. I ask you, point blank, do YOU have it in for Sorrento Networks as it APPEARS that Mr. Harvey does?

JMHO, FWIw ....

Voyager
lightreader 12/4/2012 | 8:21:29 PM
re: Sorrento Teeters on the Edge well, lets see...a top-notch industry leading
analyst like Mr. Johnson find time to dial in
to the CC and even ask a ?....and here we have
a some young kid running blah blah blah cash
flow, blah blah heading for bust....

pray, Mr. Harvey, what are your qualifications?
Do you have an MBA? Do you have a background
in finance? Do you? What do you have? Possibly
just an arts degree? Why dont ALL you guys
list your qualifications alongside your names and
pictures, any awards you may have got, and
when and where.....otherwise you are a bunch
of loose mouths....you know you were caught this
time....nobody heard the CFO say 2-3 months
cash..that is your own lame inference....say
what you will...you know that is so.....and
please, as the old british would say...what
are your QUALIFICAIONS?
fernphoton 12/4/2012 | 8:21:29 PM
re: Sorrento Teeters on the Edge You are right. Mr. Harvey and Mr. Raynovich have made claims as to what Joe Armstrong said that are incorrrect, inaccurate, and I feel misleading.
I am contacting Mr. Armstrong, Sorrento investor relations, and the SEC tommorrow morning. Not only did they give an inaccurate portrayal of what Joe Armstrong said, they wrote a piece implying that Sorrento may be in danger of "running out of cash" without even mentioning the fact they have approximately $35 million in Net Silicon shares.
fernphoton 12/4/2012 | 8:21:30 PM
re: Sorrento Teeters on the Edge I'm sure Terabeam,AT&T Broadband,Cox, and UPC among others have done a bit of research before they signed LONG TERM AGREEMENTS with Sorrento and aren't concerned that they are "teetering on the edge". As a matter of fact, I would think that each company has a larger staff
of engineers, managers etc. to evaluate the company and products than your "research", and I use the term loosely in your case. Lets see you probably listened to the conference call, found something negative and spent twenty minutes on the article. Have you ever been to Sorrento? Have you ever seen the products and talked to engineers?
If Terabeam, AT&T Braodband, Cox Cable, and UPC think there is no question with Sorrento's future then I think I will trust their research over yours.
edzed 12/4/2012 | 8:21:30 PM
re: Sorrento Teeters on the Edge The loss was less than $6MM this Q, but the cash outflow was $11MM. That unusual situation was caused by a large order that was supposed to ship but did not make it.

A $2MM increase in revenue over the previous Q logically should not take more than $2MM in extra working capital. So a total of $8MM should have been burned (not $11MM).

The $3MM in extra cash burned equals the $3MM in revenue shortfall. Coincidence...probably not!!!

Assuming the same results this Q, they should only burn $5MM (reversing the $3MM extra from last Q).

So the $9MM should last FOUR TO FIVE MONTHS using those assumptions.

That does not include any benefit from a line of credit or any sale of part or all of their stake in NSIL.
denny_g 12/4/2012 | 8:21:31 PM
re: Sorrento Teeters on the Edge Did you ever stop to think that if the Series A holders thought the company was about to go extinct, there would be NO way they could get their money back. Don't you think they are smart enough to realize that if there was no way they could get their money back, there would be no point in even asking for it? Wouldn't that be a pretty stupid and futile gesture? So wouldn't it seem likely that they do see some reasonable means the company could satisfy their demands?

And if the market thought they would likely be flat broke in 3 months, do you think the stock would have risen so far on such strong volume. Do you think it would have gone up at all? Why don't you write a little article about why the stock went up, AFTER all that info came out? BTW, what the heck is the point of your article in the first place?
Techhead 12/4/2012 | 8:21:31 PM
re: Sorrento Teeters on the Edge I agree with the comments on the title of the article. It is like saying it will fall up! Break or break through would be better. Cash is the problem with many high tech companies, nothing new there. A possible credit line, perhaps factoring or orders, a new contract, there are too many things to account for your title and bias. Simple math tells the story, you also called for a mass exodus of people in march, never happened. Go to Supercomm and write to us about the equipment, please. Leave the stock price to the market.
fernphoton 12/4/2012 | 8:21:31 PM
re: Sorrento Teeters on the Edge Thanks for your response regarding the post. Now if you would just post the link or excerpt from the conference call supporting your statement below:


"The CFO himself says they are 2-3 months away from running out of money. That is a factual statement. Can the picture be any clearer?"

Thank You

Scott Raynovich 12/4/2012 | 8:21:32 PM
re: Sorrento Teeters on the Edge fernphoton: sorry to dissapoint, but mbstockjock is not me. I do not post on Raging Bull. Also, as stated clearly in our ethics policy, I do not own stock in companies we write about. I do not have any position in Sorrento stock, nor any other of the stocks in the LR Index.

Editorial disclosure is here:

http://www.lightreading.com/ab...
Voyager 12/4/2012 | 8:21:33 PM
re: Sorrento Teeters on the Edge Good, and FAIR post here. States the risks, but also is fair at the same time. Why couldn't Mr. Harvey done the same thing?

JMHO, FWIW ....

Voyager
Noorizen 12/4/2012 | 8:21:33 PM
re: Sorrento Teeters on the Edge In your earlier post (post no. 2) you commented:

"The CFO himself says they are 2-3 months away from running out of money."

I requested a substantiation of this statement that you had attributed to Sorrento's CFO. In response you posted the following excerpt from the lightreading story under discussion:

"Sorrento's CFO Joe Armstrong said that the company burned through about $3.5 million a month during fiscal Q1. Light Reading confirmed with Armstrong today, through a spokesman, that Sorrento's cash burn is projected to be about the same this quarter but is expected to improve later in the year."

No where in the above noted excerpt do I see what you had attributed to the CFO, specifically, "The CFO himself says they are 2-3 months away from running out of money."

May be you did not understand my question. Let me try once again. Could you point me to the specific link or reference for this specific statement that you have attributed to Sorrento's CFO.

Again, thanks for the indulgence.
Noorizen 12/4/2012 | 8:21:34 PM
re: Sorrento Teeters on the Edge I enjoyed your article on Sorrento. I especially appreciate your ability to make otherwise mundane stories about technology companies very interesting, colorful, and a pleasure to read. This is a great quality that most technology writer lack. Thank you!

I have been following Sorrento fairly closely, and actually listened to their recent conference call. Your observations may be quite correct that the company seems poised to make some splash in the metro optical networking space. They seem to be expecting contracts from additional customers including carries class service providers that could allow them to grow quite rapidly.

Your comments about the generally poor capital situation of the company are a fair reflection of the reality. However, your overall conclusion - Sorrento Teeters on the Edge GÇô may not be a fair representation of the situation. At least based on my reading of the financials and listening to the conference call.

The loss for the Q1 was approximate $5.7 mil. The company reported approx. $9 mil. in cash. At the conference call, the company provided guidance for growing revenues and increasing gross margins, on quarter over quarter basis.

The inventory increase by $12 mil. was explained as shipments by the supplier ahead of schedule, and as such representing cash equivalents that would cover the cost of sales for this current quarter.

The company owns about 7 mil. shares of NSIL presently trading around $5. Sure, if the company dumped all shares in short period of time, the price of NSIL will become depressed. However, this investment can be systematically liquidated raise cash if needed. Even at an average price of $2, this represents enough cash to finance losses for two more quarters.

All this, though suggests a relatively weaker capital structure, still does not reflect a company that is teetering on the edge.

Here is my question: In reaching your conclusions, were you able to consider the company's ownership of 7 mil. shares of NSIL, and the specific inventory situation, in additions to the available cash?

The situation with the Series A preferred shares is relatively simple in my opinion, and does not reflect necessarily negatively on the company. Actually, it could very well be a indication of better fortunes for Sorrento in the near future.

The preferred shares were purchased in the hope of a hot IPO. Since no IPO is on the horizon, that investment is practically dead money. The preferred shareholders also know that they cannot redeem their shares unless there are positive retained earnings, and therefore conversion to the parentGÇÖs common is the only practical and available choice. Such a conversion will make their investment liquid, and they will be able to benefit from any price appreciation in the parentGÇÖs stock.

Thanks again for continuing to provide interesting stories on companies in the optical networking space.


Voyager 12/4/2012 | 8:21:34 PM
re: Sorrento Teeters on the Edge Check this paragraph out here:

The three investors bought Sorrento shares at $6.55 a piece. Sorrento's filing says it can buy back the warrants at a penny a piece within six months if its stock price exceeds $13.11 and stays there for twenty consecutive trading days (see Sorrento Shares Fall on Financing News ). At midday today, Sorrento shares were down $0.65 (10.6%) to 5.53.

from here: http://www.lightreading.com/do...

So, if I'm reading this right ... if FIBR closes for 20 days at or above $13.11 a share, the Warrent holders LOSE money on the deal. Instead of getting $6.55 a piece, they only get 1 cent a piece.

I smell a rat here IMO, as we were moving in that very direction ... of closing at or above $13.11 a share.

JMHO, FWIW ....

Voyager
Voyager 12/4/2012 | 8:21:36 PM
re: Sorrento Teeters on the Edge Author: Scott Raynovich Number: 10
Subject: Re: You sure seem have it 'in' for Sorrento, don't you? Date: 5/29/2001 9:35:59 PM


From the story:

"Sorrento's CFO Joe Armstrong said that the company burned through about $3.5 million a month during fiscal Q1. Light Reading confirmed with Armstrong today, through a spokesman, that Sorrento's cash burn is projected to be about the same this quarter but is expected to improve later in the year

---------

So, where do you (AND the author, who said at the end of that paragraph this:

"That means it could run out of cash within a couple of months.") get that the company will be out of cash in 2-3 months? Even there, it says that the company said that the 'burn rate' is expected to improve later in the year. Plus, if I remember the CC, they've cut expenses and such.

JMHO, FWIW ....

Voyager
fernphoton 12/4/2012 | 8:21:36 PM
re: Sorrento Teeters on the Edge So you post on Raging Bull under the user name "mbstockjock". Oddly enough your posts seem to all be of the negative variety. Could it be that you have a personal reason to write the kind of negative articles you do? Could it be a short position? I wonder if the editors of lightreading know that there is the possibility that one of their writers has been doing negative pieces on companies in which he/she has short positions and are looking to profit from their positions as "journalists".
I'm going to contact any and everyone that I can at Lightreading. However, first I'm going to inform Sorrento management, investor relations, and then the SEC.
Voyager 12/4/2012 | 8:21:37 PM
re: Sorrento Teeters on the Edge I don't know about you guys, but I've printed out a HARD copy of the article, and am also printing out hard copies of these quotes attributed to Mr. Armstrong, to send to IR and the company in the AM.

JMHO, FWIW ....

Voyager
Voyager 12/4/2012 | 8:21:37 PM
re: Sorrento Teeters on the Edge Scott (or Mbstockjock, as I think you posted this over on the Yahoo board as well),

Like I said, I don't have a problem with someone stating facts, in a fair and impartial article, even if the facts are 'painful' to see in print.

However, the Title tends to set the tone of an article, it always has, and it always will.

This because the Title is the FIRST thing that the reader sees, and thus, forms a LOT of the impression they have, as they read the article, in other words, and as I said before, it sets the tone for the article itself.

With all the companies falling down around our ears of late, something titled 'Teeters on the edge' along with what was in the rest of the article, give the impression that FIBR is about to go under ANY second now.

If I remember correctly, the CFO also said in Wednesday's CC, that they are working with a bank to get a line of credit, and that they were pretty close to doing so.

Also, their revenue INCREASED this last (first) quarter, over the same quarter last year. If I remember correctly, 1Q this same time last year, was -1.47 a share or something close to that. This time it was a loss of less than 50 cents a share (don't have the exact figures off the top of my head right now).

One thing I will say for FIBR, is that they are survivors. They have had things thrown in their path, that would of DESTROYED lesser people and companies, and yet THEY have survived. They just keep on going, when others would of given up LONG ago.

They (Sorrento Networks) seem to have IMO, an uncanny knack of getting through pretty much anything (any obstical) thrown their way, and IMO, they will get through this as well... the article and the financing issues BOTH.

Sorry, while I could be wrong here (and I don't think I am), IMO, I smell the shorts hand in this, and it wouldn't be the first time that it's been done to FIBR in this mannor either.

The shorts couldn't scare the longs or potential investors via the message board, they couldn't do a bear attack on the stock, to drive it down and STAY down, so here they are, resorting to this kind of thing IMO.

I'm tweeked right now, and I'm sure that too shows as well. I'm so sick and tired of the bullies picking on FIBR, that I'm seeing RED big time right now.

Like I said, sure, he could of said that financing was a concern, but then he could of went on to do a fair and balanced report on them, with a more fair title to start off with.

His title says it all IMO, what his intent was ... to try to cut FIBR down.

Man, I wish I had a ton of money right now ... I'd go out and start buying the FIBR stock up left and right for two reasons.

1) Most important - Because I believe in the company, and also feel they've finally gotten their management issues behind them.

2) Revenge - To really tweek off the shorts, but good, and give them a taste of their OWN medicine.

JMHO, FWIW .....

Voyager
Scott Raynovich 12/4/2012 | 8:21:37 PM
re: Sorrento Teeters on the Edge From the story:

"Sorrento's CFO Joe Armstrong said that the company burned through about $3.5 million a month during fiscal Q1. Light Reading confirmed with Armstrong today, through a spokesman, that Sorrento's cash burn is projected to be about the same this quarter but is expected to improve later in the year."

fernphoton 12/4/2012 | 8:21:38 PM
re: Sorrento Teeters on the Edge

"The CFO himself says they are 2-3 months away from running out of money. That is a factual statement. Can the picture be any clearer?"

I'm going to call Joe Armstrong in the morning and share your above quote with him. In the meantime if you could post the link or excerpt from the conference call where Mr Armstrong said the company is 2 to 3 months away from running out of money I would appreciate it.

Thank You
Noorizen 12/4/2012 | 8:21:39 PM
re: Sorrento Teeters on the Edge Scott,

"The CFO himself says they are 2-3 months away from running out of money."

Could you point me to the specific link or reference for this statement that you have attributed to Sorento's CFO.

Thnaks in advance.
lightreader 12/4/2012 | 8:21:39 PM
re: Sorrento Teeters on the Edge it may if you smaller sales as need be!
Scott Raynovich 12/4/2012 | 8:21:40 PM
re: Sorrento Teeters on the Edge Edzed: Question for your big brain. What happens when Sorrento tries to dump all those shares on the market. Does the price of NSIL stay the same?
fernphoton 12/4/2012 | 8:21:40 PM
re: Sorrento Teeters on the Edge One would have thought that a fair and unbiased report of a companies balance sheet would have mentioned the approximately $40 million in Net Silicon. I would think this would help tilt the scales a bit in their favor while they are "teetering".
fernphoton 12/4/2012 | 8:21:41 PM
re: Sorrento Teeters on the Edge Again another bias negatively slanted article against Sorrento. A quick list of others:

- "Sorrento, Hot Product or Hot Air"
- "Sorrento Puffs Itself Up For An IPO"
- "Osicom Investors Rebel"

You claim you are unbiased, but why it is always a negative slant with your articles and this company. Could you not have done a piece titled "Sorrento Has Record Quarter" or "Sorrento Improves Margins And Bottomline"? Aren't these just as newsworthy and accurate from the conference call? Yes, they are. However, in keeping with your history you chose the one issue which you could focus negatively.
My question to you is why is it this way everytime?
edzed 12/4/2012 | 8:21:41 PM
re: Sorrento Teeters on the Edge You forgot to mention that Sorrento owns 6.9MM shares of NetSilicon (NSIL-O $5.11). The investment is worth ~ $35MM at current prices !!!

No, it is not the same as cash. But it is also not the same as being up against the wall.

C'mon Light Reading, where's the research?
Scott Raynovich 12/4/2012 | 8:21:42 PM
re: Sorrento Teeters on the Edge Voyager,

The CFO himself says they are 2-3 months away from running out of money. That is a factual statement. Can the picture be any clearer?

The story also points out that preferred Series A investors are asking for their money back. Seems like a fairly important statement of fact to me.

"Teeters on the Edge," (my head) is meant to convey the delicate sense of balance between the two possibilities of turning profitable and running out of money (hence, "The Edge"). How is this not an accurate description of what's going on ? It's all in the financials. You just have to add up the numbers--they do the analysis themselves.
Voyager 12/4/2012 | 8:21:42 PM
re: Sorrento Teeters on the Edge Mr. Harvey,

Whew! In my opinion, your title alone, shows your seeming bias AGAINST, Sorrento Networks, FIBR. Why couldn't you have done a more BALANCED, FAIR and IMPARTIAL article about them?

You also failed to point out that the main reason the stock was down today, was most likely because the NAZ was down over 75 points today!

How about the very fact, that Sorrento Network's Metro DWDM products are MUCH better than Ciena's, which YOU don't mention here, but YOU YOURSELF had said, in an earlier article here:

http://www.lightreading.com/do...

Why the sudden 180 here?

Yes, FIBR can be a risky investment, but it seems based even on just your title, that your main goal, right from the start, is to give the impression that the doors for FIBR will close tomorrow.

I guess the part that really makes me wonder most why the attack mode by you ... is like I said, your title.

You start off with 'Sorrento Teeters on the Edge' and don't stop trashing the company from that point on.

Why the attack against FIBR now I ask? Is it because you are more 'pro' Ciena, and don't want Sorrento Networks to succeed?

All I'm asking ... is why the attack mode here by you.
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