Y2K (Year 2000) Stocks: An Investment Discussion Message Board

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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion

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To: Risky Business who wrote (9576)	2/19/1998 10:39:00 PM
From: BM	Read Replies (1) of 13949

Cognicase conference call - notes Note - this conference call was held on Feb 3 and featured President Ronald Brisebois and CFO Marc Lamy. Before reading this, it might be worthwhile reviewing the Feb 3 release to put things in context. Here's the link Message 3333187 The quality of the transmission varied during the call so I hope I've been faithful to the original - the current growth rate is expected to continue - customers want complete solutions, not just tools. This is why the acquisitions of Icotech was so important - can now bid on much larger contracts - objectives of current R & D efforts: 1) new features to improve productivity, handle more data bases 2) developing COGNI-Test, automated testing toolset incorporating reverse engineering tools - targets for future acquisitions? - systems integrators; technologies complementary to existing toolsets - pricing: prices a bit soft in 1997 but now increasing and expected to accelerate in the future - current headcount: 600, including Icotech - geographies of revenues: Cognicase is 50% US, 40% Canada and 10% elsewhere - new partnerships should be announced in next few weeks - 85-90% of revenues are direct customers - 30% of work is Y2K related; 70% is related to platform migrations (I found this very surprising) - Icotech's run rate $18 million and has a good backlog of work - mostly Canadian. Icotech contributed 46k of the 707k in earnings from operations - recruitment of new staff: no problem at the moment (due to partnerships with CEGEPs) - availability of qualified people to competitors very thin - sales cycles shortening dramatically. Signed three new contracts this week (not at liberty to reveal until legalities finalized) - major competitors: Canada - CGI Group and ISM; US - Peritus & Keane - company is getting increased visibility - opportunities in Euro conversion? Yes due to Icotech's presence in Europe, work for Credit Agricole - sales staff: now 8, plus 1 Icotech - new vs repeat business: estimated at 30% for new business - expect more contracts with Canadian federal government in next few weeks - provincial governments? Not all have a sense of urgency until now. The governemt of Quebec has been analyzing for a year - may start converting in March - opportunities with telcos? May be difficult with CGI Group's recently announced partnership with Bell but perhaps they'll be too busy - Canada Post? Did an assessment for them a year ago but no news yet - because of the weak Canadian dollar, we enjoy a price advantage in the US market - margins: currently at 17%, hope to have it up to 20%

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