John, Last Friday you posted a list of questions for anyone calling the company. After I got finished with all my stock shopping today, I decided to call Michael Shepard at FNTN for an update.
I asked him the questions you listed. Here is what I found out.
1. Do you see yourself as on pace with first projections for start up time?
ANS: Revenue for '97... Yes. Beta testing in Mid-December. Expect to have Full Line of Services on-line around Jan 15-20. Hiring 25 salespeople by Dec 31. Will add 25 MORE salespeople by the end of 2Q.
2. Is the response as strong this early as you hoped?
ANS: Excellent response from Mutual Funds. More Broker/Dealers are responding daily, but they want to "see, feel, & touch" first.
3. Will you announce any major brokerage firm clients as/if you get them?
ANS: Major firms... Yes. Will also announce each month the number of companies signed. Will also be filing 10-Qs the first of the year.
4. Are you sending out packets to brokers now, next week, have already done this, or when?
ANS: Video presentations are going out now. Brochures and peripheral materials for salespeople are being prepared now.
5. Do you see this wave of technology having the type impact that the "SHARK" system in the 80's was reknown for?
ANS: Our Founder developed "SHARK." This is different. The feedback shows that we are really "getting their attention." EVERY single response has ranged from Good to Very Strong interest.
6. Is there upside to this 15MM projection as well as the obvious downside if you are not successful with estimates?
ANS: "We are VERY Comfortable with our projections."
7. Do you feel that you have been conservative on these estimates or not? What is your plan for meeting the estimates?
ANS: Kind of answered already. But we are Very Comfortable with our estimates.
8. Do you anticipate any further capital needs, and if so how much in dollar terms?
ANS: Yes! Can't comment further yet, but we are interviewing Investment Bankers. It will take money to put 50 salespeople out there.
9. Detail your plan to submit to the Nasdaq small cap listing (which I've been told is their strong intention).
ANS: The application to NASDAQ takes about 6 months to process. Have to meet the requirements first, so the move to NASDAQ probably won't come before the later part of '98.
OTHER COMMENTS:
"We are on track with our program." Have significant business that is signing on for this year, but will not have a profit for '97 because of all the previous expenses. They ARE NOW starting to generate revenue.
Michael Shepard was very straight forward. He invites anyone with questions to call him.
Best wishes,
Brad
PS. John, thanks for the good questions. |
