SWEBF quick (9 months ended Sep 30 1997*) update.
Revenues: $17.8 Million (Q1 '97 revenues +86% q1-q1, Q2 revenues +42% q2-q2, Q3 revenues +48% q3-q3)
R&D: ~$2.848M or 16% of sales (Q3 R&D at $671k v. Q3 '96 at $1.5M, a 55% decrease (-55%) q3-q3).
If anything, R&D should be increasing. Sixteen (16%), however, year-to-date (9/97) is respectable. R&D is the last division which should be affected within a technology company and one which is being looked at much closer re: California Technology Stock Letters' Michael Murphy's Technology Company Valuation Methodology "GROWTH-FLOW" Model, which zero's in on R&D expenditures...
Cash: $13.56M
At the end of Q3, SWEBF was closing in on profitability. However, subsequent to Q3, the material adverse situation with Lernout & Hauspie (NASDAQ:LHSPF) alleged Kurzweil breach of contract materialised, of which, may push profitability for SWEBF back (significantly?). SWEBF is trying to mitigate the accordant damages with new product offerings/alliances e.g. PGSoft alliance/product Gimme Space, 747, et al., XML enabled HoTMetaL 4.0/Panorama, WebFiler Interactive, et al, in addition to its $12+ million damages lawsuit against LHSPF.
source: softquad.com |
