levy,
The financial reporting of neom doesn't take their investors serious.
They report for the last quarter:
"The Company is extremely pleased with the improvement in its financial position as of March 31, 2000."
siliconinvestor.com
This comment should be based on the following information:
"Net sales were $4.1 million, compared to $7.8 million for the same quarter of 1999. NeoMedia reported a net loss of $2.4 million, or $(0.19) per share, for the three-month period ended March 31, 2000. This loss is compared with a net loss of $1.8 million, or $(0.20) per share, for the same period of 1999."
Much lower sales and a higher loss. The loss as a percentage of sales increases from 23% to 58%. I can't see the reason to be "extremely pleased". No explanation is given for the results.
There is more cash available, up from 3M to 12M. However, the statement does not indicate where the cash came from.
The statement indicates that the number of shares increased from 8,848,340 to 12,752,000. So an increase in 4.000.000 shares. They have an extensive stock option program, so let's assume 3.000.000 shares have been sold to an outside investor, for which price the shares have been sold? Hard to get any information.
No explanation why the license income has gone down by 80%.
They talk about setting up the paperclick portal in the US, Asia and Latin America. If I go to their site, I see only one language, and I haven't seen a change in the last four months.
If you are short on cash and your strategy is setting up the paperclick internet business, why would you buy a computer reseller?
siliconinvestor.com
They announced to buy this reseller on April 24.
"The assets include all of DayStar's software and hardware and source codes used in the operation of the DayStar web site"
Well let's have a look at the website: daystar.com
First line: "If you encounter problems, call the webmaster."
Second line: "Updated Feb. 24, 2000"
I clicked on the link "I want to know more". This brought me to a page which says "Last update Nov. 20, 1998"
The other links on the home page don't work or relate to information from 1998.
At the bottom of the page, there is a large banner leading to www.bizrate.com This is a site with opinions about virtual stores. If you search there for daystar.com, it is not listed.
Well that says it all.
I would be careful. I had some shares in the past, but to my opinion, they try to ride the e-train without bringing anything to the party.
I will continue to follow this company, just as a case study. I is not my intention to be negative, but the management of each company should take responsibility and publish quality reports.
Regards,
Pareto |
