Synopsis of INPR's 4th Q conference call
[The INPR conference call is available at 1-800-475-6701, access code #493303 until Feb. 2.]
I) Profitability efforts
* In November 1999, INPR management outlined a financial plan for INPR at the AA conference, which was updated at the Needham conference a few weeks ago. Both CEO Fuller and CFO Ball expressed satisfaction in the company's progress in executing that plan.
* The goal is to rebuild Inprise/Borland towards operational profitability in the 2nd half of 2000.
* The revenue generators to keep an eye on are: First Half of 2000 -- (i) VisiBroker 4.0 (which was released late during the 4th Q and didn't have time to supply a "kicker in sales"); (ii) C++Builder 5, and (iii) J Builder for Linux. Second Half of 2000 -- (i) Kylix, (ii) ASPI infrastructure solutions, and (iii) Delphi 6.
* During the 4th Q, significant progress was made towards meeting INPR's target operating model. A serious effort was made to streamline the cost of the support structure (e.g., facilities). Each product has been reviewed. A new alignment of the sales, marketing and research & development efforts have been made around each product. The new sales model will integrate "services" with the sales of those products. With respect to "free" downloads, such as with JBuilder Foundation for the Linux, Windows and Solaris platforms, INPR now plans to "mine" new customers for service support. Interestingly, for those that responded to the survey associated with those free downloads, twice as many choose the Linux version over the Windows version and only 6% were current JBuilder users (i.e., the free downloads have opened-up a new large customer base for INPR).
* During the 4th Q, INPR generated $45.5 million in revenues. The revenue mix was: (i) Delta C++ 39%; (ii) JBuilder 14%; (iii) Enterprise solutions 22%, and (iv) Services and Other Products 25%. While operating spending increased, it was attributable to increased R&D spending as sales/general administration costs remained flat.
* The discussion regarding the restructuring charges were consistent with the press release.
* The financial position of INPR improved dramatically with an end of year cash position of $197.7 million. There was an improvement in account receivables collections and an increase in the exercising of stock options (i.e., the employees have faith in what they see and are putting their money to work).
* The comment regarding the creation of the venture capital fund was consistent with the recent press release.
* CEO Fuller promised new alliances and partnerships with significant industry leaders. This was demonstrated with "new" contracts during the 4th Q with such names as Bank of America/NationsBank, Ericsson, and Saber. In giving visibility to the 1st Q of 2000, CEO Fuller told us to expect: (i) continued partnership arrangements especially with Linux partners; (ii) continued progress towards operational profitability; (iii) improved technical support; and (iv) revitalized "partnership programs".
* CEO Fuller unequivocally stated that he is "100% committed to enhancing shareholder value". He indicated that he was happy with what the "new" INPR team had accomplished in just nine months.
* Finally, CEO Fuller thanked all of us supporters on the "message boards". Welcomed everyone to the Linux World Expo in N.Y.C. next week (February 2nd-to-4th). And, hinted that something "secret" might be demonstrated during the Expo. |
