I called Scott Cameron at TSIS today trying to make some sense out of the share price. As near as I can determine, everything looks bright. The next press release, among other things, will announce earning for last quarter to be about $420k. The previous quarter was about $360K so that's about an 17% gain quarter over quarter. Scott indicated that many new customers are lining up at this point and the percentage figure for quarter over quarter revenue growth should continue to increase, and most likely, dramatically. The news release outlining this is written and should be out tomorrow. Audited financials should be available within 60 days.
AT&T's use of record and playback is greatly increasing and the revenues should reflect a minimum of a 50% increase over the previous quarter. TSIS is currently completing their month long testing of MCI's record and playback, and MCI has indicated that when the service is fully implemented it could generate as much as 4 times the volume of the AT&T services. Confratec, one of the largest conference call companies, is coming on line with record and playback, and expected to generate revenues similar to AT&T.
On the calling card side, MCI is also interested in procuring calling cards from TSIS and if the company can provide satisfactory service, there will likely be very large volume creating a very good revenue stream.
Scott said there would be no difficulty in providing services to MCI. They have doubled their sales force and increased the tech staff. Most of their service is automated all they need to do is bring in more T1 lines and computers as needed for their clients requirements. 90% of the development for their applications is done, and now it becomes cookie cutter operation as new clients come online.
I spoke with Scott about the delay (or possible loss) of Intel concentrating on the issue of revenue stream. The projected numbers were much less than the AT&T figures and the coming MCI figures. Although we can hope for successful negotiations, in the grand scheme of things Intel does not appear to represent a major difference. The numbers certainly do not seem to justify any part of the hit our stock has taken lately.
As always with IR, the optimistic viewpoint is stressed. I assume there could be delays, but from my conversation, I gather that earnings momentum is building. It is their hope to eventually "own" the record and playback market by the end of 98.
As far as the declining share price goes, there was much emphasis placed on the fact that Knight securities handles the majority of electronic trades and therefore has the potential to affect price moves based on their trading in this security. Scott's phone message also mentioned the possibility that a couple of the larger holders may have become a bit antsy in this market and wanted to raise some cash.
And finally, regarding the stock buy back program. They will not be repurchasing shares at this time, but when the earnings pick up consistently above the 150K/month level, which should be very soon, they will immediately implement a buyback program repurchasing shares at regular intervals and retiring them.
From what I have gathered today, the next six months should tell the story of where TSIS will be going.
I hope this help.
Coz |
