Business Summary
Omtool designs, develops, markets and supports open client/server facsimile software,
delivering solutions which automate and integrate fax communication throughout the
enterprise. For the fiscal year ended 12/97, revenues rose from $8.4 million to $19.4
million. Net loss totaled $4.4 million vs. income of $440 thousand. Revenues reflect
increased market acceptance of Fax Sr. for Windows NT and expansion of the sales
force. Loss reflects a $6.7 million charge for the CMA Ettworth acquisition.>
Omtool has partnered with enterprise giant SAP to provide seamless integration with
SAP enterprise software. Other corporate partners include DEC and HP. OMTL
PR ""As stated by Dave Malcolm, group product manager for Microsoft Exchange
Server, Microsoft Corp : 'Omtool continues to provide corporate customers with a real
business solution using innovative technology that is fully integrated into Microsoft
Exchange Server, Omtool's fax solution is one of the most proven and complete in the
industry.""Fax Sr. is compatible with Mac, Unix, Java, etc. Please visit OMTL web site
for more.
Check out these two posts.
messages.yahoo.com@m2.yahoo.com
messages.yahoo.com@m2.yahoo.com
Remember the date was 5/19/98 the stock was a t about $9.00 and First Albany was an underwriter for OMTL's IPO.
As of 5/22/98 OMTL $8 7/16.
98 EPS EST .43 PE on 98 EST 19.62
99 EPS EST .65 PE on 99 EST 12.98
Please check these calcs.
OMTL shares compare favorably with software industry averages. The industry average
PE (TTM) is 52.26. The average Price/Sales (TTM) is 17.28 while OTML's P/S (TTM)
is
5.54. TTM EPS not meaningful due to one time charge for acquisition CMA Ettworth.
At the time of the IPO (August 1997) the float was 4 million. Insiders have sold
2,789,687 shares since the IPO, and filed Form 144's to sell 394,290 more shares. The
insider trades seem to be spread out among numerous insiders. The float remains fairly
small at 7,183,977. Total OTML shares 12,646,000.
The stock appears to be drifting down on no news. It appears to be severely
undervalued. I feel the downside risk is quite limited while the upside is quite promising.
Microsoft's entry into this field is obviously a big risk. As always do your own DD
before investing. The above is accurate to the best of my knowledge.
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