Apparently Legacy did not formally disclose Q3 ending Sep 30?
SEC 10-Q indicated filing on November 11, Veteran's Day, a government holiday. Was not distributed through PR Newswire nor BusinessWire wherein it would have been picked up by Yahoo!, sec.yahoo, quote.yahoo et al.
Their balance sheet is rather precarious viz a viz quick ratio < .5, negative working capital...(as of Sep 30, 1997)??? SWEBF should take them out and spin off the Passport assets to AT&T WorldNet (existing Alpha partner) and keep DA/Intern...This could be done for effectively very little cost to SWEBF given their apparently increasingly deteriorating fiscal situation and only 2+ million shares outstanding trading at ~$1/share quote.yahoo.com In addition to (ref/SEC Form 10-Q for period ending Sep 30, 1997)
RISK FACTORS
"...Dependence on IBM* and Alpha Soft for Substantially All the Company's Revenues. For the first nine months of 1997, approximately 46% of the Company's total revenue was derived from royalty payments made by IBM to the Company on sales of the Emergency Room title and 33% was derived from Alpha Soft on royalty revenue generated by the District Attorney and ER Intern titles. The Company expects royalty revenue from the Emergency Room title, a DOS-based product, to diminish significantly over the course of 1997, as it will face increased competition from Windows-based products and the royalty revenue from the District Attorney and ER Intern titles to increase as these products enter the market in larger numbers. Although IBM is currently distributing and marketing the Emergency Room title on behalf of the Company, the Company and IBM have terminated their co-development relationship with respect to future RealPlay(TM)
titles, including, but not limited to, the District Attorney title. In light of the Company's dependence on IBM for the distribution and marketing of its Emergency Room title and Alpha Soft for the distribution and marketing of the District Attorney and ER Intern titles, if IBM and/or Alpha Soft were to terminate their distribution and marketing relationships with the Company, if the Company is unable to develop other CD-ROM titles or other services, if the Company can not find alternative distribution arrangements for its present or future titles, or if the Company's other products and services, if any, do not receive market acceptance, there will be a material adverse effect on the Company's results of operations, financial condition and business..."
LIQUIDITY AND CAPITAL RESOURCES
"...In July, August and September 1997 the Company failed to make a principle payment on an unsecured note Payable to a related party. The monthly payment, in the amount of $10,000, was due in accordance with the terms of the original Note dated February 1, 1991 as amended which provides for monthly payments of principle and interest commencing on July 1, 1997..."
© 1997 freeedgar.com
ref/Legacy Software (NASDAQ:LGCY) SEC Form 10-Q period ending Sep 30, 1997
*IBM relationship has been terminated. IBM Royalties based upon DOS versions and concomitant declining revenues. Have been replaced by Win95/Alpha contract. |
