On October 16, 2002 Brooktrout Inc., a provider of hardware and software for communications systems, reported 3rd quarter 2002 revenues of $18.5 million which was up from $17.2 million in the prior year quarter. The Company's loss from continuing operations was $629,000 or $.05 per share compared to a loss from continuing operations of $5.2 million or $0.43 per share in the 3rd quarter in 2001.  Net loss was 4 cents or $482,000.  Gross margins were up 2% from the second quarter.  Tangible book value is $5.02 per share which it is currently trading below.  BRKT has $42.2 million in cash and investments or $3.46 per share.

     With a current market cap of $61 million the stock trades at less than 1x sales. Brooktrout carries no debt.  We believe there is lower risk here because it hasn't had a runup like many other technology stocks in addition to the fact that BRKT trades at net asset value.
 

UPDATE 10/19/03 - Recommend closing position. 
Sold 10/20/03 at $12.75 for a gain of 158%