Summary: 10-23-97
Connectsoft Communications
>>> connectsoft.com <<<
BUSINESS: ÿCommunications Software
ÿÿÿÿÿÿÿ This is a development stage company. As such, it is difficult to analyze and draw conclusions about future potential business.
ÿÿÿÿÿÿÿÿThe company is developing software to convert incoming messages (voice mail, email, pager, facsimile, web content) to allow access from any on-line computer or telephone. This market segment is called "unified messaging". Besides direct sales, the company has identified three market segments.
ÿÿÿÿÿÿÿÿ(1) Computer/printer manufacturers: the company's software has been sold to Hewlett-Packard for a paid-up license fee of $1.3 million. HP will adapt the software to its printers and computers, and offer it free via the Internet. Regarding printer manufacturers, the license is essentially exclusive.
ÿÿÿÿÿÿÿÿ(2) Telecommunication providers: based upon technology licensed from DCL (an English company) to the company, a server will provide real time telephone access to information provided by the company's Internet/Intranet Access Server.The company has entered into a letter of intent with Bellcore to market products to the telecommunications industry.
ÿÿÿÿ ÿÿÿHowever, Lucent (one of the three former AT&T companies) recently purchased the best known "unified messaging" competitor, Octel (see octel.com). Lucent is a formidable competitor focused on national and regional telecom companies.
ÿÿÿÿÿÿÿÿ(3) ISPs: the concept is to provide software to ISPs in exchange for a share of revenue.
ÿÿÿÿÿÿÿ After the offering, this company will be 50% owned by its parent which has legal, sales and management problems. For more detail go to the Nasdaq web site (http://www.nasdaq.com), enter the symbol AUGI, click on the symbol, move the vertical bar next to "charting" (on the left) to the bottom, click "SEC filings" and read the most recent filings.
Rating: on a scale of 1 to 5 -with 5 being high...ÿ
Proven Management: 1ÿÿ Market Growth: 3ÿÿ Market Domination: 1ÿÿ Proprietary:ÿ 2
Financial Overview...ÿ
Post Offering Market Capÿ
(assumes fully sold)
$48 million Times Sales
ÿ
Deferred
revenue
Times Earnings
ÿÿÿ
Losses Times Net Worth
ÿ
3
Primary use of Proceeds:ÿÿsales & marketing (20%);
debt repayment (12%); r&d (10%); working capital (58%)
Offering Size:ÿÿmax. $24 million
Underwriter:ÿÿHampshire Securities Corporation
GASKINS/Co Investment Community - 310-826-6017 - fgaskins@gaskinsco.comÿ
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