Good evening Larry,
You've just asked the big question. If we look at the recent takeovers in the firewall industry, they have sold for anywhere from 7-17 times revenues. In CYBG, we not only have a firewall company with great technology, but also Tradewave. Additionally, the 1997 revenues were WITHOUT an NT product. This point can not be over stated. The lack of an NT product meant that CYBG was not competitive for a large portion of the revenues that were being spent in this sector. Therefore, we should start off by asking what type of revenues do we expect over the next 4 quarters (starting this jan.) The next step in answering your question is to compare our products with others in the e-commerce sector..VRSN for example. We may not be competitive in every area that VRSN is involved with, but I'm sure that we deserve a portion of VRSN's huge market cap...don't you?<VBG>
Having said all of this lets assume that we deserve at least 10 times LAST YEAR'S revenues for the firewall portion....~200 million dollars/~8 million shares....well, you can do the math. Now, the largest unknown is in regards to the valuation you place on Tradewave?...Unfortunately, I don't know. Maybe Steve, Terry, or TD would take a crack at answering your question.
Sincerely,
Jas |
