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Microcap & Penny Stocks : TPII - Year 2000 (Y2K); Groupware; Client Server Migration
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To: BONZ who wrote (7990)7/8/1998 5:24:00 PM
From: Dave Gore  Read Replies (3) of 10903
 
CONFERENCE CALL NOTES (very positive overall)

Hopefully someone will summarize more completely, but here is a start:

Robert Bowman had the best line of questioning asking about future debentures and revenues and "Burn rate":

Responses from CEO:

1) Not quite covering "Burn rate", are covering 85%; they are definitely fine into the fall, at which time they may have more than sufficient revenue coming in. They are asking 30% of payment up front now.

They are considering many different options for additional monies (if necessary), but won't have to do debentures or anthing dilutive, it seems. Private placement or bank loans, or even a buyout or partnership with a major corporation are other options, or again nothing at all.

NOTE: Revenues should increase about 500% in the current quarter over last.

2) What about contracts in the cue? Any Profitable Quarters in 1998?
Have bid on 150 contracts and at least 20 contracts that they bid on are have an 80% certainty of happening. Therefore the 4th quarter of 1998 is certainly a possibility

3) Is there business beyond the year 2000?
Yes, lots of data migration business (which is there core business) because of continuing code that has to be coverted

AS400 (cobol 400) is one major part of their business; also groupware.

Less than 55% of code of Y2K is "mission critical", so up to 45% will not be finished until well into the 21st Century.

Euro-problem involves 8 currencies going into 1 and tons of work there. Not scanning for dates but numbers.

There is also a UNIX problem will expire in year 2038.

4) Are they wroking with any major Brokerage firms?
Working with Martin Janis as PR, of course, and doing Road Show which has attracted attention from major names we would recognize; hinted that a few major firms are intersted in helping them out in some way, including partnering, or if the price is right, a buyout? Their products are apparently of big interest to some major companies.


5) What about profit margin?
30-60% very high!

6) What about using employee properly since they are such a big part of the costs of doing business?
Recently hired about about 30 new employees; now about 64. They only hire them when they need them to keep costs down.

Final Interesting Comments:
Hinted strongly that they may consider being bought out; sounds like the Board at the meeting on July 17? may consider offers of buyouts or partnership if the price or terms are agreeable.

Also said he has never seen a business so robust in his 25 years in business

Choose to answer "no comment" on whether TPI has initiated a "poison pill" to ward off an unwanted takeover. I sensed they are considering being acquired by a big partner to get instant stock appreciation or to become a major player. Perhaps it may be a partnership with some phase like the BEMER business. They are wise to keep all their options open and a poison pill would send the wrong signal.

They clearly dislike the volatility of the OTC:BB market and that is clearly one of the reasons they are working with some major brokerage houses or considering being acquired? Nasdaq?

My final comments: Very open; described the business well and the process of doing the assessment and remediation. Was very patient with all callers who all were individual investors. Presented a poistive but not over-hyped picture of what lies ahead. Gave feeling of confidence. Increased revenue picture looks real good. Debentures should not be necessary as it sounds like the board will be discussing lots of other options on July 17
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