The meeting was in fact brief. Observations, largely based on comments made by Jorge Forges, who chaired the meeting:
1) In a formal sense, the meeting was not concluded - as not enough shares voted to pass the conversion. Forges indicated he was 'very confident' that enough shares would be in by the end of the day to pass the measure.
2) The recent large sale was to American Express. The deal was won over IBM, primarily on the strength of the technology and secondarily on lesser overall life-cycle cost. The Am Ex deal was for one of eight data centers, and structured in such a way as to permit additional purchases by Am Ex for one or more of the other data centers through invoking provisions in the original contract, and without need for additional negotiation.
3) Debt was recently converted to equity (at favorable rates, according to Forges) to maintain the net worth minimum required to keep the NASDAQ listing.
4) Pipeline continues to build, but is not converting to hard sales as fast as the company's management would like to see.
5) Cash flow is not expected to be a problem, at least through Q1, according to Forges.
6) Several sizable deals were pending as of that day, the 31st, that management was trying to close.
There was a Q&A session after the formal business, and Forges did a good job of providing responsive answers where he could. |
