Re: Westergaard Conference details
Employees and Operations
One year ago, Alydaar had 12 employees. Today they have in excess of 200 and expect to double that number within a year.
Now that their SmartCode software has proven itself in the marketplace, Alydaar is preparing to launch a massive marketing campaign.
SmartCode is based on a methodology called "windowing" as opposed to say, Matridigm's, which uses "packed binary". According to Bill Esping, CEO of Matridigm, in response to questions by Dow Jones about the sudden departure of their COO: "The marketplace is saying it wants windowing".
Alydaar already has offices in Charlotte, Hartford and Chicago, and plan to set up shop in Dallas, Orlando and Los Angeles. Overseas, they have offices in England, Belgium, Norway, Sweden and Switzerland, and are soon branching out to South Africa and Germany. They recently hired the former Director of Sales of Platinum Technology and their CIO was formerly employed by Unisys.
Revenues and Cash Burn
Based on current staffing, Alydaar feels they have the capacity to produce annual revenues of $100M. Their cash burn in $1M per month. They keep costs low by mixing seasoned programmers with recent college graduates who have passed Alydaar's specialized training classes.
They recently acquired $6.5M in a reg -s offering overseas. The shares were sold at ~$7 each and have a one year restriction on trading. Full details may be found in their recent SEC filing (and available via the SEC Edgar Archives). Among other things, this money will allow them to expand their operations, as detailed above, and allow them to occupy a new 22,000 sq ft facility they subleased in NC from Microsoft.
Their target market is Fortune 500 companies, and their contract sizes range from $5-50M. Their $20M deal with SAIC currently has two awards totalling $9M, with required completion dates of 18-24 months. They have 3 pending deals with large system integrators, and have 5 banks and 3 insurance companies in the pipeline. In addition, the overseas offices also have revenue producing deals forthcoming.
Miscellaneous
Alydaar's presentation was the best attended and best presented of the four companies that were invited, in my admittedly biased opinion. The Q&A afterwards was focused on earnings and Alydaar's projected earnings were triple the other three companies rosy predictions combined. While they are aware of their stock price, they have their sights set on life after inclusion on NASDAQ (end of 2Q) and are convinced that once analysts are able to follow ALYD, the share price will take care of itself. Their success with Dupont is already paying dividends as they have been presented potential work by other similarly sized companies.
In other words, this #1 draft pick is ready to shine in the big leagues-- at these prices, get your tickets while you still can.
- Jeff |
