Common use of Backlog Clause in Contracts

Backlog. We schedule production of our systems based upon our backlog, informal commitments from customers and sales projections. Our backlog consists of firm purchase orders by customers for delivery within the next twelve months. At December 31, 1999, order backlog amounted to $55.2 million, compared to $20.8 million at December 31, 1998. Anticipated orders from customers may fail to materialize and delivery schedules may be deferred or canceled for a number of reasons, including reductions in capital spending by cable television operators or changes in specific customer requirements. In addition, due to weather-related seasonal factors and annual capital spending budget cycles at many major end-users, our backlog at December 31, 1999 or any other date, is not necessarily indicative of actual sales for any succeeding period.

Backlog. We schedule production of our systems based upon our backlog, informal commitments from customers and sales projections. Our backlog consists of firm purchase orders by customers for delivery within the next twelve months. At December 31, 19991998, order backlog amounted to $55.2 20.8 million, compared to $20.8 5.5 million at December 31, 19981997. Anticipated orders from customers may fail to materialize and delivery schedules may be deferred or canceled for a number of reasons, including reductions in capital spending by cable television operators or changes in specific customer requirements. In addition, due to weather-related seasonal factors and annual capital spending budget cycles at many major end-users, our backlog at December 31, 1999 1998 or any other date, is not necessarily indicative of actual sales for any succeeding period.