MIGR, I think I found another gem...
their clients, Intel, DELL, and IBM...
What makes me like it... MigraTEC's product line and services are designed for use with the Intel Itanium 64-bit processor, which IMHO, will be the future... even AMD is kicking Intel's a$$.
64 bit processing the future of computing.
Still losing money, but it might just be a long hold... <ggg> I'm talking about going long on stocks again.
The impact date, depends on when can Intel start to offer the chip, as well as doing when can they start doing the mass production.
Short term outlook, L2 looks good, volume increasing, looking for a 10% and a potential big run from here JMHO.
The purpose of the following discussion and analysis is to explain the major factors
affecting MigraTEC's results of operations and variance of results between periods.
The following discussion of MigraTEC's financial condition and results of operations
should be read along with the financial statements and notes to the financial
statements included elsewhere herein.
Management believes that the net loss for the quarter ended September 30, 2000
was primarily due to the Company's focus on development activities which did not
produce significant revenue but which, nevertheless, allowed MigraTEC to
significantly develop its upgraded 32 to 64-bit migration technology as well as
enhance other automated migration tools. Management believes that its
development activities positioned MigraTEC for the introduction of its technology
into the market during the latter part of the third quarter of 2000.
A portion of MigraTEC's product line and services are designed for use with the
Intel(R) Itanium(TM) 64-bit processor. On April 17, 2000, subsequent to over six
months of testing of MigraTEC's 32 to 64-bit upgrade technology by Intel, MigraTEC
entered into a software license agreement with Intel. Under the terms of the
agreement, MigraTEC granted a royalty-free license to use its migration software
products to Intel for internal use. The license is perpetual, but may be terminated
by MigraTEC after 12 months upon 90 days' notice. The agreement allows Intel to
use MigraTEC's technology at Intel's Application Support Centers to educate
independent software vendors on the use and application of the technology. The
agreement also requires Intel and MigraTEC to use their best efforts to create and
execute a joint marketing plan related to the introduction and dissemination of
MigraTEC's technology. The implementation of the joint marketing plan is intended
to include website links, training, press releases, industry event participation and
testimonials.
The demand for MigraTEC's 32 to 64-bit migration products and services largely
depends on the introduction of the Intel(R) Itanium(TM) 64-bit processor, which was
originally expected in the early fall of 2000. During the quarter ended September 30,
2000, Intel released an earnings report announcing that introduction of the
Itanium(TM) 64-bit processor would be delayed until the first half of 2001.
MigraTEC's management believes that this delay will result in a similar delay in the
demand for MigraTEC's initial products and services, but will not substantially
impact the longer term potential market for the Company's products and services.
However, if the Intel(R) Itanium(TM) 64-bit processor is not successfully introduced
in the first half of 2001, MigraTEC's results of operations and financial condition will
be materially adversely affected.
In May 2000, MigraTEC entered into a consulting agreement with Dell to provide
migration technology expertise, migration process expertise, process consultation
services and Migration Workbench technology to a minimum of ten Dell precision
Workstation Independent Software Vendors ("ISVs") and customers. This
agreement provides these ISVs and customers the opportunity to upgrade an initial
software application to the 64-bit Intel Itanium platform using MigraTEC's
technology. The initial applications represent only a small fraction of the total code
needing to be migrated. MigraTEC believes that the Company will have the
opportunity to contract with these ISVs and customers to upgrade a significant
number of additional applications as a result of this agreement.
During the second quarter of 2000, MigraTEC also began working with IBM's
Monterey development team to adapt MigraTEC's software migration technology to
provide an automated path for migrating 32-bit applications to the 64-bit Monterey
environment. Management believes that this is the first step in introducing
MigraTEC's software migration technology to IBM's ISVs and the UNIX
marketplace.
During September, 2000, as part of MigraTEC's efforts to prepare for future growth
and increased market visibility, managerial responsibilities were realigned. The
Company's Chief Financial Officer, T. Ulrich Brechbuhl, assumed the additional
responsibilities of President of the Company, allowing the Chief Executive Officer,
W. Curtis Overstreet, to focus his attention increasingly on external constituencies. |
