the run down on SBAS via wallstreetcity site
<< Internet Stock Watch Nov 19 1999 12:00PM CST
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StarBase: Managing Software Code for Major Companies
by Chris Connor
StarBase {SBAS} provides software configuration management
(SCM) products for IT projects on the enterprise level.
StarBase's products also aid in the facilitation of two important
aspects of the Internet - e-commerce infrastructure and Web
site development. The company plays an important role in the
development of software applications because its products
manage and maintain the software code and documents during
the development process. The importance of the company's
products is shown by its extensive list of customers that include
Compaq {CPQ}, Dell {DELL}, Intel {INTC}, JP Morgan {JPM},
and Lucent {LU}.
During the quarter, ended September 30, the company received
several repeat orders from existing customers in addition to new
orders from several companies that StarBase added as
customers. This increased business drove sales up 126
percent during the quarter from the same period in the prior
year. Furthermore, the company broke even for the first time
since going public, excluding one-time expenses. Even more
impressive, the company reported that cash flow from
operations were positive for the first time in its history.
In addition to the impressive improvement of the company's
operating results, StarBase offers investors tremendous
potential with its new Open Avenue portal that focuses on open
source applications such as Linux. The funding of this portal
was largely responsible for the company's one-time expense
charge. Open Avenue will allow software developers to share
views, knowledge, and source code over the Internet -
establishing a virtual community for developers. StarBase can
take advantage of this community by hosting and managing the
development projects that result from these collaborations. The
Linux movement, and its attendant community, continues to
gather strength as more developers seek free-flowing open
system operating systems and applications rather than
restrictive proprietary software from companies like Microsoft
{MSFT}. Investors should note, however, that despite its
Linux-supporting portal, a large percentage of StarBase's
products are currently Windows based. However, StarBase is
beginning to switch its StarTeam products to Linux.
To improve its e-business solutions business, StarBase
acquired ObjectShare, a leading provider of object-oriented and
e-business professional services. This merger will allow
StarBase to tap into the service revenue aspect of e-business.
The merger of Object Share will also be immediately accretive
to both earnings and revenues.
Investors may be extremely interested in the fact that Open
Avenue will operate as an independent company, which could
lead to an IPO sometime in the future. The potential of a future
Linux portal should provide a great boost to StarBase's share
price. Until recently, StarBase's stock had traded below $4 a
share (see chart), which suggests that the stock has plenty of
upside given its improved results and the potential of its Open
Avenue portal. >> |
