I guess my my mid-point earnings estimate was the closest, off by a
penny. Oh well, I wish the actual was higher, but that's reality.
Listening in to the teleconference, here are some highlights:
- 19 big Exceed deals, each exceeding $100K, totalling $6.6M.
- Connectivity revenues to be used to grow data warehousing (press
release also says that)
- HUM will make more relatively large acquisitions in the data
warehousing business
- Sales demographics: 56% USA, 36% Europe, 3% Canada
- Andyne profit growth expectations are 30% this fiscal year
- Connectivity sales slowed down this quarter. Not clear whether this
is a trend. The next quarter will tell. Exceed sales may have
13 - 15% growth, then to 5 - 10%. 10% annual Q over Q growth may be
likely. Then again, data warehousing growth should take up the
slack.
- Host Explorer and NFS Maestro represent about 25-30% of total sales
excluding Andyne.....No change.
- So far Andyne sales are small compared to HUM's. Sorkin would not
reveal the split so as not to give competitors any info on this.
- Future sizable acquisitions should involve adding about 300 more
employees world-wide, in my estimate, up to approx 1000 from 660.
- The UK deal represents somewhere below $200 per seat but above $100.
Some revenue has been received. There will be more rolling-in in
coming quarters. There is some servicing revenue associated with
this deal.
So the results are as expected. Business venture into the warehousing
market is timely. Connectivity sales should bridge the revenue gap as
Andyne sales grow. The picture looks bright in the longer term. The
barn doors on earnings announcements will not be blown off, I suppose,
until at least the next quarter.
We can look forward to more acquisition announcements. The data
warehousing market was reiterated to be a multi-billion dollar
playground.
That's the essence. I hope this was informative, Tomorrow's financial
news will be interesting.
Martin |
