Looking For A Turnaround in TSSW in 1998. . Reasons:
1) Company's Cost Cutting Program is Working.
" We Believe that these increased marketing efforts, along with our successful cost containment programs, which have resulted in expense reductions of nearly 35% since the second quarter, will help TouchStone Software improve its results and financial position. "
Results to Date:
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During the Third Quarter, TSSW reported a loss of .09 on revenues of 1.444 million versus a loss of .15 on higher revenues of 1.862 million. Company was able to reduce its loss by .06 versus the prior qtr on a revenue reduction of about $420,000.
2) New Products Should Increase Revenue Going Forward.
Larry Jordan, President and CEO of TSSW, said in the third qtr press release: " Revenue was down primarily due to decreased sales of our PC-Cillin II anti-virus product early in the quarter along with the initiation of sell down programs on WINCheckit and Checkit Diagnostic Kit in anticipation of the new versions. "
Results To Date:
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1) TSSW has increased the number of retail stores that carry its products from 7,500 to over 8,500. I believe this number is now about 9,000 retail stores.
2) TSSW will have a full qtr of PC-Cillin 3 sales versus about 6 weeks of sales in the 3rd qtr.
3) Company stated that they are now implementing plans to " . . maximize our retail exposure with PC-Cillin version 3 " and have recently released two new Checkit Brand products . . . Checkit Version 5 and Checkit Pro.
4) PC-Cillin continues to win awards and accolades from industry publications, including the coveted 4 star award from PC-Computing, the Steller Award from Windows Source and selection as a finalist for the 1997 PC Computing MVP award.
5) Sales of software products are generally stronger in the 4th qtr versus the 3rd qtr.
6) I do not expect to see returns of older products . . ie Checkit version 4 and PC-Cillin 2. Should not have such a great offset to revenues as we saw in the last qtr.
Thus . . .looking for lower costs and greater reveneus going forward.
DC |
