Ajay,
The reason vrty recently purchased Cognisoft was to incorporate "push" technology into their Search97 product line. "push" technology or "persistent queries" as vrty likes to call it will be hugh. It is similar technologically (but far superior) to what Pointcast and Castanet offer currently for Internet users. With the addition of "persistent queries", Search97 will be in a good position to dominate the search engine Intranet (and maybe the Internet as well) marketplace. With the continued "explosion" of information on not only the Internet, but on most corporate Intranets, everyone has an ever greater need to 1) get just the info they need most critically, and 2) get it in a timely manner. "persistent" queries satisfies both of these needs on a near-real time basis.
It appears, in fact, that vrty sacrificed profitability this quarter in order to accelerate the integration of this new technology into Search97. You may have noticed that revenues this quarter were almost as high as the record setting revenues of last quarter. The reason they lost money this quarter was NOT because they cannot find a market for their products, but apparently due to the high R&D costs of incorporating this new technology and bringing it to market quickly. In fact, this was probably a very good move by Courtot and should help them in the long run. Search97 has always been marketable, now it should be in a position to dominate the field.
A lot of us (on this thread) had expected (hoped?) that vrty would have achieved profitability by now. I firmly believe that we were wrong ONLY in expecting too much too soon. Unless Courtot's impulsive personality screws up the plan (like I wish he would stop firing everyone in sight), vrty should be a good long-term play. I was happy to see his comments that they are now changing their focus from development to marketing their product. I expect to see costs go down and revenues rise over the coming months. As Jack would say, patience on this one will be amply rewarded.
Just remember, do your own research and do not blindly listen to anyone else on this or any other stock!
regards, rpm |
