SoftQuad's Annual Meeting Presentation (10-14); Retail Update.
Highlights from the Annual Meeting Presentation
We've seen success in record sales, expanded profile in distribution channel...Increasing sales growth, decreasing net operating losses (before restructuring and amortization)...revenue per employee ~$26k (Q1 97), ~$42k (Q2 97), ~$75k (Q3 97)...Challenges faced--Microsoft entered the HTML editing market and H.i.P. failed to meet expectations, Result: poor financial performance...We responded appropriately by -restructured through rightsizing, kept core assets and key employee base intact, aligned the organization to capitalize on strengths in software publishing and Internet products, created a sense of urgency, contained costs (50% reductin in operating losses...Key Assets and Core competencies--Alpha/SoftQuad alliance boasts *software publishing prowess, database and internet expertise, strong brand equity...Organized along two paths I. Software Publishing (Alpha Software brand, open access to distribution channel attractive ROI potential II. Internet Software Development (recognized expertise, R&D intensive, higher risk, possible future star)...Software publishing--ranked among top 50 publishers (PC Data, Aug 1997)...through it Alpha Software subsidiary, SoftQuad is one of only 50 companies with more than 10 products on a retailer's shelves simultaneously...Units sold: ~75,000 Q1 97, ~85,000 Q2 97, ~115,000 Q3 97...HoTMetaL 4.0 - PC Advisor, November 1997 "...the best all-around site builder maney can buy...has to be one of the best engineered products - in any category we've seen this year"...HoTMetaL 5.0 -- easier to use, database connectivity, XML functionality...Kurzweil VoicePlus, VoicePad, Voice Commands covered under products and again while discussing Lernout Hauspie...Challenge ahead: leverage our strength --broaden product offering via licensing and acquisition, expand channels of distribution, continue to build brand recognition...Internet remains an avenue of opportunity--leverage software development investment -expertise in web authoring and databases, substantial installed base; -Well-positioned to take advantage of emerging XML standard...Benchmarks of future success: increased volume, increased value of shareholder equity, continued operating efficiency, expansion of dist channels, expanded product licensing and acquisition, increased market share of internet products... [end]
ComputerCity update--Corporate sales of Kurzweil VoicePad surged in recent days i.e. source of unusually high sell-through attributed to Corporate purchasing at retail outlet(s) (per ComputerCity). Sunday (10-26) national CC newspaper supplements featuring Kurzweil Voice Commands, Clean&Protect.
CompUSA Sunday national newspaper supplement featuring D.A. Pursuit of Justice, HoTMetaL 4.0. |
