not good news ,
November 22, 1999
JVWEB INC (JVWB)
Quarterly Report (SEC form 10QSB)
MANAGEMENT DISCUSSION AND ANALYSIS
GENERAL DISCUSSION
Results from operations for the first fiscal quarter ending 9/30/99 suffered from a variety of unexpected setbacks. Primary to that involved the relationship with Lernout and Hauspie, and the significant investment in AMP3.COM.
With Lernout and Hauspie, despite a year-long mutual courting of an agreement, the support that had been promised towards the www.crisis-communications.com program failed to materialize over the course of the quarter. As a result, with the exception of one significant opportunity that we hope will mature early next year, management was unable to significantly capitalize on the marketing efforts that had been opened up through our New York presence. Significant staff reductions within the L&H division that management was dealing with have caused us to reach out to new contacts at L&H to further the relationship. We have opened up encouraging dialogue within the U.S. divisions of L&H, and are continuing to pursue that relationship.
Therefore, the focus of our marketing efforts is being re-directed towards capturing marketing and on-line corporate sponsorship consulting revenue for clients and projects generated by management. Specifically, for example, our www.ihomeline.com joint venture represents opportunities for corporate sponsorships and joint marketing campaigns.
With www.amp3.com, the significant event for the quarter was their sponsorship of the emerging artist stage at Woodstock in July. That sponsorship, of which JVWeb had been instrumental in supporting, was anticipated to catapult AMP3 into a material presence in the emerging digital music download, or MP3, Industry. Although, as of this time, that investment has not yet realized its anticipated potential, management is optimistic that a return on that investment will occur.
On-going efforts have concentrated on the following areas: 1) continuing the development of www.ihomeline.com. Management is anticipating a live simulcast of the program will soon take place. Once this occurs, this will give the ihomeline joint venture a platform to simultaneously webcast and broadcast on the radio programs that can be syndicated into a variety of avenues. 2) the www.linksxpress.com investment. Linksxpress has a strong management team and is well-funded. There are proving to be a number of opportunities for synergy between our two organizations, and we are presently in negotiations to fully capitalize on those synergies. Management is optimistic that those discussions will bring positive results. 3) In the hosting area, management has had a number of meetings with various GTE representatives, in order to fully maximize our co-location facility in Phoenix. At least two significant proposals have been issued in conjunction with GTE. However, none have yet resulted in significant contracts, although some minor revenue is beginning to materialize. 4) Considerable energies have been applied in securing additional joint ventures. Management has striven to be prudent in securing good agreements with worthwhile projects. As a result, although we continue to be in serious negotiations with a variety of ventures, as of this time, no additional agreements have been signed.
For the future, management is consolidating its resources into the generation of immediate consulting revenue. Management will also continue to work towards developing www.ihomeline.com, which is presently in a capital raising phase.
Management has recently begun exploring various business combination possibilities to create greater momentum for the company. No serious discussions are underway at this time. However, management believes internet market forces and technology changes continue to rapidly create new business models, and challenge existing ones. Therefore, an alignment with a compatible entity with additional resources could be a benefit.
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