ACVC 5/11/00 Conference call note for Mar00 quarter
- Difficult quarter, but inline with preannouncement
- 26 cent per share loss
- For the year 74.4M in sale vs. 62.6 vs prior year
- FY 6.1M net gain vs. net loss 4.9M
- 18M for sale of infospace in Jun quarter
- Post y2k was slowdown reason in sales
- 4.2M in Cleansweep anticipates rev was 200M in the quarter
- NEC 22.8% of total rev
- 32% of rev is partners
- 10% increase in international sales y2y, 19% for the quarter
- Unity was only produt line that did not experience a decline
- Unity will increase ACVC margins
- Alot of ees were excercising options during the quarter
- Inventory decreasing slights
- Cash 23M up from 16M in Dec
- $2.21 in cash value, $4.43 in book value
- Rev of 13M, major shortfall, but industry wide, temp bump in the road
- When y2k was a nonevent, our business for upgrade business dropped dramatically
- 14% of rev is Unity, mostly Siemens #1
- 30% drop in other lines minus Untiy
- Significant drop insales of switches due to y2k slag
- IP, Carrier are other options available to telecomm company
- Unity supports IP and other switchs
- Unity is our bright spot
- Number one vendor of unified messaging per study
- Window 2000 will be on million of desktops next year
- 5.7M in revs america 34% drop
- 4.2% in partner revs, 31% decrease for partnerships
- NEC #2 customer for Unity, #1 Siemens for Expression 1.1 software
- Phillips #2 partner rev after NEC, #3 ECI
- 15-20% growth in FY2001
- Have three partners NEC, Siemens, and Acatel which have not fully ramped up in Unity
- Hope to announce first Fortune 50 user by end of next quarter
- Unified messages market is growing dramatically. Our three partners is 28% of the market.
- Unity represents the premier solution for unified messaging
- 10,650,000 shares exercised in the quarter
- Unity rev has 50% dealer rev vs 50% partner channel in North America. Expect more increases on the partner channel
- Expect Unity would be a bulk of dealer channel sales
- Not expecting to use much cash for operation because profitable in December. Will use cash this quarter though.
- Seimens 470 product 1.1 does not incorporate Lotus notes. Need to incorporate phonesoft product for Lotus Notes
- 56M seats in Lotus notes worldwide. Important for Siemens and Acatel to have a Lotus notes version of the product.
- 40% of MSFT, 40% of Lotus, 20% rest for messaging
- NEC sales declined due to NEC having a tough quarter in selling Unity
- Pursuing a company that is infringing on our patents in that stutter detect area
- NEC 6.5M for FY, quarter 2.5M in cash raised for excercising options
- Comfortable with analysts estimates for the year. April usually not a good month
- Other Fortune 50 users in pipeline
- These companies 60K-100K users meaning 4-5M in total deployment for ACVC
- Competitors have not integrated with CSCO yet
- We can grab several voice streams at once which competitors cannot do.
- CSCO agreement includes marketing and sales agreements
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Other product lines dropping faster and the best is only 14% of revs meaning next quarter should be a loss also. Maybe a buy after the next quarter.
Jack |
