Guys:
I am pissed! I am pissed at Vrty's performance, its earnings, its sales, its ability to execute, high turnover rate, excess spendings, etc.
Now that you know how I feel I have to say I have attended their Conference Call today at 4:30 EST. It was dry and uneventful. The only positive news that I have heard is that they project FY'98 R&D to be between 20% and 23% vs. current whopping 34%. They also said they will be shipping IneliServe 3.0 this week or, at the latest, end of June, 1997.
Their OEM channel revenues had been dropping and now around 25% of total S/W revenues. They predict it will drop to about 20% in FY'98. Their strategy will be to "leverage" install base + creating "partnerships".
My revised forecast is that they will be loosing money for the next 2 quarters, and make money in the last 2 quarters of FY'98. The revenues for the latest aquisitions (64K) will not be realized until next year.
Well, its a decision time. To be or not to be. I have a lot riding on this, but I am leaning towrad getting out. I am going to make my decision based on the next few days worth of trading.
Good luck to all.
Jack |
