JDR: Nothing seems to please guys like you. When they don't get the work, you guys call it a scam. When they do start to get the work, it's just "overflow". I just don't understand that thinking.
S.C.B., N.C.R., E.D.S., TRW/BDM, Keanne, Cyber, etc. all have apparently run tests through FRX factory past 3 months. Now starting to run code. My understanding is that 3 million lines of code recently announced are a direct result of positive testing. My understanding of the reason why the dollar amounts are not given is that this is a very small portion of the contracts to be awarded.
With Forecross in a quiet period, the company is not allowed to make forward-looking income statements. As far as margins, my understanding, talking to Avalon Research and Forecross's SEC Form 10, margins are as good or better than industry standards - 40% or better. Because of the obscure languages they can process, they will be able to demand big dollars per line.
I do agree, however, business has been slower coming than anticipated. This is not unique to Forecross but is common among all Y2K vendors. Most analysts believe the work will now extend past the year 2003.
Forecross, contrary to what you say, is a unique vendor in a very small category. A factory-based solution, fully automated over a large number of platforms and languages with cutting edge technology in foreign languages.
There has been a great deal of skepticism because Forecross's technology is so superior to other vendors. After extensive testing by the aforementioned companies, the work is starting to roll in. My understanding is that Forecross is doing the work in about 10% of the anticipated time.
I really believe that if Forecross came public today you would all be majorly excited. Just because we were all early, doesn't mean we were all wrong. Let's start looking forward, not backward.
Lastly, Forecross just named number 20 out of 100 of the fastest growing public companies in the SanFrancisco Bay area at an awards dinner hosted by Coopers and Lybrand as reported in the SanFrancisco Business Times May 1, 1998. They were in good company. Ascend Communications was #3, Oracle #72, Wells Fargo #77, People Soft #25. |
