Stock structure:
2. RETIREMENT OF REDEEMABLE PREFERRED STOCK
During the first quarter of 1998, the Company redeemed the remaining 792,186 shares of Series F Preferred Stock for $6.5 million including outstanding interest. The $6.5 million payment retired the obligations under the Series F Stock. The Company used the $7.0 million proceeds received in January 1998 from the sale of its subsidiary in France, Dorotech, S.A., to finance the buy back of the Company's Series F Stock.
3. CONVERTIBLE NOTES REDEMPTION
During the first quarter of 1998, the Company redeemed in cash $1.3 million of the 8% Convertible Notes ("the Notes") due July 8, 2002 and August 20, 2002. At March 31, 1998, $600,000 of the Notes remained outstanding.
4. ISSUANCE OF COMMON STOCK
During the first quarter of 1998, the Company completed a private placement of 1,108,947 shares of Common Stock, together with warrants to purchase an additional 50,000 shares of Common Stock, pursuant to Regulation D under the
Securities Act of 1933. Proceeds from the offering were $1.1 million and offering costs of $26,000. Pursuant to the terms of the private placement, the Company is obligated to file a registration statement with the Securities and
Exchange Commission to register the shares by August 31, 1998.
This was the situation in May:
The Company has had net losses in each period of its operations since its inception, except for one quarter, and it had an accumulated deficit at December 31, 1997 of $124.4 million. Net losses applicable to Common Stock were $14.3 million for the twelve months ended December 31, 1997, $21.1 million for the year ended December 31, 1996, and $34.9 million for the year ended December 31, 1995.
(Notice that net losses decrease signifigantly every year)
The adverse results of operations that the Company has experienced is expected to continue at least until the latter part of 1998.
(not any more, things are getting better quickly)
The Company believes that the combination of existing cash, potential future proceeds from such additional offerings of equity securities as may be required, and any anticipated cash flows from operations, should provide sufficient resources to fund its activities through the next twelve months and to maintain net tangible assets of at least $4 million as required for continued inclusion of the Company's securities on Nasdaq.
No need for immediate financing... they have cash to play with.... NOW they are showing record revenues and expect growth for the rest of the year (at least) There are very active and very upbeat Yahoo boards, and the SI thread will wake up soon...
Stolen from Yahoo thread:
"Treev's two competitors that I found, DCTM and FILE, (Documentum and Filenet) sell at 50 and 30 respectively. DCTM last Q had 26 million in rev, and few 100K in profits. DO numbers like that justify the $50 price.! Filenet had more robust rev's 70mil but 2.3 only mil in profits. P/E 130. Both companies have market value in excess off 500 million.
So it seems that the industry is followed by Wall Street, and with constant revenue growth, some profits, over the next quarters, this company could easily go to 20!!! " |
