Humbly report, Gerald, just got off the phone, yes BM, my prior attempt must have been too early.
To add to what Gerald said:
Acquisitons will strenghten COGIF marketing, lead to larger contracts, and EPS growth.
No new share issuance in regards to Systemhouse deal.
Hexagon vaults Cognicase into new geographical locations and markets.
With the consolidation of Cognicase and Systemhouse factories, Cognicase gains 54 new staff familiar with the Cognicase toolset, for a total of 110 in factory staff, which will allow COGIF to handle more and bigger contracts.
Usage of factory is approximately 80%, plenty of capacity left, even when 50 million LOC orders come in.
Price is C$.45 - C$.50 per LOC, double with testing.
Price per LOC may rise, since customers seem to accept the COGIF contract price offered.
Customers are signing faster, the process of new contracts is accelerating.
Adding staff continually, COGIF has good reputation, 100-200 more planned additions.
Regarding further acquisitions, an example of a company Cognicase may be looking at would be a testing tool company, to round out COGIF offerings.
Government contract should be announced soon.
The call was very hard to hear, due to the nature of recorded phone conversations, and also due to the accents of COGIF participants.
If anyone finds the transcript on the net, please post the URL.
All in all, my impressions are very positive. This company is on a roll, with a clear strategy for now and for the future, ready to capitalize on it's growing strengths in an environment of increasing y2k urgency.
Svejk
(GL-15 applies: digiserve.com ;-) |
