Hi Arnie,
Yes Caere is the leader in ocr sotfware. Ocr is more and more accurate, almost to perfection - thus useful-. Caere is financially strong, very cash rich and conservatively managed. The company wasted several million $ in the past few year buying technology ZYnet that proved useless and failed at an attempt to buy Viewstar, a consulting and document management firm. The idea there was to grow the company by leveraging OCR. Didn't work, probably because of culture/staff clashes. Bot Wordscan 2 years ago which was an other player in OCR. I think Caere will be much less adventuresome in any future purchases.
They are and will continue to focus on OCR improving it, increasing the user base, and testing the laws of elasticity of demand by fine tuning there bundle & upgrade model pricing. ie. more units at a lower price overcompensates the loss of revenue per unit. It is working very well lately and will continue for the next few quarters at least, especially since accuracy is getting very very good. Look for version 9 of omnipage soon. Also omniform and like products will get more and more popular with time. Finally, look for a upgrade this fall of desktop doc mgmt package Pagekeeper, most interesting in this emerging software area. Have a look at the financials of the Caere site.
Patience here will be rewarded. Besides no one controls this strong software outfit, almost 4$ in cash per share, no debt, and 12-15% net margin margin sustaineble
Happy investing
Hugbo |
