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Technology Stocks : Healthcare.com Corporation (Nasdaq: HCDC)was [HDIE]

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To: Starduster who wrote (1240)6/17/1998 11:35:00 AM
From: TickerHound  Read Replies (2) of 15094
 
Outlook From The Merger Looks Positive

Morgan Keegan Research Notes

There are several positives concerning HIE's recent merger with HubLink. HubLink has a new message brokering system (OMS) based on Windows NT platform and object-oriented programming. HIE's interface engine is known for having an excellent user interface. The company will eventually combine the best attributes of both applications into one product and we believe the combination of OM's functionality with HIE's user-friendly interface makes a compelling story. In addition, HubLink decided in 1996 to pursue other markets outside the healthcare industry and has successfully secured customers in the government, banking and manufacturing sectors. This should help jump-start HIE's sales efforts in markets where we see exceptional opportunities. In summary, the merger with HubLink solidifies HIE's presence in healthcare and gives the new company additional technologies and experiences in other vertical markets.

We expect HubLink to add approximately $5 million in revenue during the remaining three quarters of 1998. We project the company to gradually reduce general and administrative expenses and generate some efficiency in R&D. This would improve operating margins and we expect this trend to continue into 1999. The company will take a merger-related, non-recurring charge of $750,000 in the second quarter and expects to take an additional non-recurring, integration charge in the third or fourth quarter of this year (approximately $250,000-$500,000). The company also expects to generate positive cash flow in the third and fourth quarters and finish 1998 with $5 million in cash.
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