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SCHEDULE 14A INFORMATION
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OF THE SECURITIES EXCHANGE ACT OF 1934
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NETRO CORPORATION
(Name of Registrant as Specified in its Charter)
C. ROBERT COATES
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3) Filing Party: C. Robert Coates
4) Date Filed: July 12, 2002
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SOURCE: C. Robert Coates
Netro's Directors Agree to Meet with C. Robert Coates to Hear his Proposal to
Increase Netro's Share Price
LAKE FOREST, Il., July 12, 2002-- C. Robert Coates announced that Netro's
directors have invited him to meet with or talk to two of the company's
independent directors.
He said, "This is a very promising development. We only wish this meeting
could have come months ago as we have repeatedly requested of the board. We
will be working with Netro's CFO, Sanjay Khare, to coordinate this meeting. If
necessary, I am prepared to get on a plane to meet with these directors as
early as Monday morning".
"They've asked me for my agenda and a list of the discussion topics to be
covered at the meeting."
"My first priority is to discuss with them my proposal to increase Netro's
share prices to $3.50 or more both now and in the future. This could be
achieved as early as next week by Netro's board announcing a self tender at
$3.50 and a subsequent open market purchase of shares if the price ever again
falls below $3.50."
We want to see Netro not only survive but prosper. Fortunately, there is no
conflict between short term and long-term value maximization since the value of
any company is the discounted value of future cash flows with by far the
greatest weight given to near term cash flows."
"My second discussion topic with the directors is the firm's current business
model. We've done extensive research on fixed wireless technology. What some
shareholders still do not know is that Netro's current business model just
won't work. Netro's management team needs to communicate to shareholders its
own market research that shows that Airstar can never be sold at a profit.
Technology is just moving too quickly. The key technology architects left the
company in 1998 and Bungee failed in its catch up efforts. Airstar is basically
older, higher priced technology. Netro must now pin its hopes on Project Angel
and it needs to market and sell this product quickly before it finishes in last
place in China."
"The self-tender and open market purchase program I am proposing to Netro's
board of directors guarantees the greatest value to shareholders. It gives
every shareholder the same opportunity to receive cash and to maintain the same
ongoing proportional interest in the company. Some shareholders will choose to
cash out at $3.50 a share. Others will choose to hold all of their shares for
higher prices."
"Paradoxically, Netro's excess cash is a real obstacle to management making the
right decisions and the company surviving. We've seen this over and over again
in the tech sector as company after company burns through all their cash in an
effort to realize their CEOs' unrealistic visions of the future".
"There's no shortage of cash even today for promising technologies and
competitive business plans backed by competent managers. Even in the telecom
business aggressive new competitors to Netro like Cambridge Broadband and
Navini have raised the money they needed."
Netro shareholders can call Todd Martin at the Robert Coates Group with any
comments, suggestions or questions. Todd can be reached at 1-800-295-0841,
extension 210. Or they can e-mail us at tmartin@rcoates.com.
SOURCE: C. Robert Coates