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Okay, who is the Benchmark Company? And what is this about?

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Anyone have an idea?

Satbob

Posted by Satbob - 9 years ago

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Company Overview

The Benchmark Company, LLC. provides financial advisory services to banks, mutual funds, hedge funds, and institutional investors. It provides securities sales and trading services. The firm also offers private placements, MERGER AND ACQUISITION, capital markets strategic evaluation, shareholder value assessments, transaction examination, recapitalizations and rights offerings, divestitures and spin-offs, and valuation advisory services.

HUMMMMM??????????

SATBOB

Posted by Satbob - 9 years ago

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VTSS has previously announced it would participate in an investor conference sponsored by Benchmark (a firm located in Milwaukee). These meetings are on the east coast and appear to dovetail nicely with the Wedbush conference which has a been announced to be held on May 13.

I take it this is an attempt on behalf of VTSS execs be more efficient in their travel.

You can be sure VTSS has not contracted with Benchmark to act as a financial advisor to "explore opportunities". VTSS would be required to disclose this in a public announcement. It has not done so.

These meetings are simply investor relations meetings.

Posted by dlog - 9 years ago

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That is probably the case, nonetheless, I can't believe that we are right back where we were a couple of years ago. October 2014 they have to deal with the debt again. By this time the Company's performance should have been much better so that the stock price would be elevated above the conversion price and the debt would have been pretty much a thing of the past. Instead, they are going to have to make another "deal" with the holders or do another bargain basement stock offering. Ugh!

Satbob

Posted by Satbob - 9 years ago

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Satbob,

I am a bit confused about how you look at the debt situation.
This has been brought up and talked about many times.

as of march 31, 2014 Vitesse had $48.2M in cash
the debt due in October 2014 is: $32.7M

Why would Vitesse have to "make another deal with the holders"

The only "deal" to be made is to pay the debt off entirely.

as far as the Convertibles being paid for by the way of "shares"
(that is if the share price were to be high enough)
I do not believe Vitesse had any intention of doing this anyway they have inflicted enough dilution on the shareholders( Mr. martin) already

as far as the remaining debt due in August 2016, the remaining cash plus any added cash accumulated between now and 2016 would be enough to pay off the $17.2M that is due.

The debt situation is a done deal. all with cash. stop worrying about it.

Posted by christ3opher - 9 years ago | Updated 9 years ago

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They list Working Capital at $15m plus the debt leaves the company running on zero. They had this cash earlier also - why didn't they payoff Whitebox then instead of extending the terms?

Posted by Satbob - 9 years ago

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I believe your calculations are without adding the revenue from Q3 or Q4.

as far as "why didn't they payoff Whitebox then instead of extending the terms?"

I really can't answer this for them. call them and ask why?
Satbob, I am like you, I would have paid it off then.

Posted by christ3opher - 9 years ago

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We are continuing to forecast losses into the 3/4 Qtrs and so I am not confident at all that CashFlow will be positive - adding people without adding sales doesn't necessarily add cash. It just looks absolutely tight to me.

The last time that they did that offerings they pissed away a lot of cash without advancing our position much.

Posted by Satbob - 9 years ago

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I believe all of what you speak about is the reason why they pushed the " Term A and Term B " Loans out until 2016.

IF the 3 and 4 Quarters do come in below expectations I am sure Vitesse will proceed with another "stock offering", adding more dilution. as of now I am not expecting this to occur, but who knows with the track record we are dealing with.

According to the latest 10Q

" We intend to use our existing cash to repay our 2014 Debentures on or before their maturity in October in 2014."

" In addition, the credit agreement for our term A and B Loans requires us to maintain a unrestricted cash balance of $8.0 Million."

it also mentions that they are expecting to have enough cash to finance this BUT if they run short then they will have to raise funds. as I mentioned above, raising funds means "stock offering" with added dilution.

Lets hope that Q 3 and Q 4 are revenue filled quarters.

Posted by christ3opher - 9 years ago | Updated 9 years ago

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The utopic picture was, positive Q2, which would have left NO doubt about the Q3 goal, join Russell, convert month after joining, and enjoy the riches which come from a company clicking on all cylinders.

Reality?? we're back where we were, our fearless leader has all but guaranteed Q3 will be a loosing situation as usual. Q2 was most important in my mind in the courtship with Russell; it will be a tougher sale selling them on our potential alone, but just might work.

"I believe your calculations are without adding the revenue from Q3 or Q4."

Admire your defensive posture Christ, but the reality of our situation speaks loudly. Headcount increase, half million for IP license, CRG's juicy pay, are all attacking the companies resources's... having been a willing participant in this show, i keep an glass half full mindset, perhaps Q3 will surprise and build huge excitement for future Q's; just wish we could have joined that Russell guy.

"The joke's on all of us" means none of us are figuring this riddle(vitesse) right!! and that's no joke.

Peace

Posted by GARIF - 9 years ago

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White Box was not paid fully as funds were used to invest in the future remember? we tweaked stuff for IoT and Storage among other things.
lets hope sales start rolling in or our shares will become like our Dollar...

Posted by GARIF - 9 years ago

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If VTSS were contemplating a sale, we would see something like this:

http://www.datacenterknowledge.com/archives/2014/05/15/rackspace-hires-morgan-stanley-evaluate-acquisition-partnership/

Keep in mind that a similar thing was happening with cell phone manufacturers when smart phones began to displace dumb (?) phones. There was an overall decline in all revenue with legacy product revenues falling off a cliff, and new product revenues ascending rapidly, but the overall revenue experienced a dip before resuming, or even surpassing previous levels. It's not a perfect market comparison because the cell phone market is very crowded and VTSS has many unique products that put them in a market of one. I just wish that management's revenue "reach number" was derated when published to the investment community. If there is a surprise, let's have it be to the up-side. It seems like the engineers are doing the sales forecast. They should have that number vetted by the marketing folks to parse the bs coming from sales. Salespeople are born optimists, and engineers are born pragmatists: they believe what you tell them.

Posted by phobos - 9 years ago | Updated 9 years ago

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