A letter from Alydaar CEO Bob Gruder to all ALYD shareholders:
I have received numerous phone calls and emails requesting information on two items. The first is, "what is the status of the NASDQ listing?
Alydaar submitted applications concurrently with the SEC and the NASDAQ. The SEC application, called the Form 10, calls for Alydaar to become a fully reporting company. Once the Form 10 has been approved by the SEC, we believe Alydaar has satisfied all of the requirements for a NASDAQ listing and we hope to be approved by NASDAQ within a few weeks after acceptance. As of today, April 24, we have not yet received the first round of questions by the SEC (The SEC has 60 days to respond). I hope to have both approvals by the end of June. Alydaar projects it's April balance sheet to be.
Cash: 3.0 million
A/R: 1-2.0 million
New PP&E: 2.5 million
Deposits: .1 million
Total Assets: 6.6-7.6 million
A/P: .3 million
N/P: .3 million
Total Liabilities: .6 million
C/S: -0-
Add. Pd-In.: 14.9 million
Deficit: (8.9) million
Total Equity: 6.0 million
Total Liab. & Equity: 6.6 million
Issues swirled on the "chat lines" concerning millions of shares of Regulation S shares hitting the market in the next few weeks. Alydaar did complete a Reg S offering. However, the shares are restricted under the Reg S guidelines and are not available for resale on the open market until March of 1998.
The second request I frequently hear is; "Why haven't you announced anything?" In fact we have announced a $20MM dollar contract with SAIC. However, the reason for no follow up announcements is because our clients have not given Alydaar the authority to do so.
At present, Alydaar has agreements with three large insurance companies, one small insurance company, two large Wall Street investment banks, two large commercial banks, and one manufacturing company. In addition, we have several pilots underway which appear to be quite promising and I believe many will turn to be long term agreements.
I have intentionally taken the no-hype position for Alydaar and have waited until the infrastructure has been firmly in place before taking an aggressive marketing stance. After all, processing hundreds of millions of lines of code is not as easy as some firms would like you to believe. I am now comfortable with our factory and we are going to be spending in excess of a million dollars for the rest of the year for marketing and sales. We will open several new sales offices this quarter both in the U.S and abroad.
Alydaar is the only automated Y2K vendor in the world who actually has put code into production.
Even though this is a great achievement, we always desire to be the leader in technology. For this reason, we announced SmartCode II in December of 1996 and it was proved to be a resounding success as it was expressed in our DuPont press release. We are now in final beta with SmartCode III which will increase productivity by an additional 66%.
Very truly yours,
Robert F. Gruder
Chairman
Source: alydaar.com |
