I talked to Jerry Kelly, Treasury Manager at Quarterdeck today. He couldn't say anything about sales. He acknowledged the company is bleeding , but it is still variable. They still have a good line of credit if needed. There is some discussion going on by the company of a reverse spit, but that has not been decided, and of course that will take stockholder approval. The decision whether to seek that approval will be made if a few weeks. I informed him that, I don't like the idea of a reverse split. He said the only reason they were considering it was, to keep QDEK listed on the NASDAQ, but even if it were delisted, the company would not have trouble trading. As he put it to paraphrase, traders will always find a good company. Plus it is not that difficult to re-list on NASDAQ. Quarterdeck still has a good name, and good products, marketing has to catch up with the products. Cost cutting has been draconian, and I think that will help put the company back in the profit margin. The new key direction of the company will be the corporate market, multi-user products. We should know if the new direction, and management is on track by the first of the year. It is fair to say they are very aware of the stock price, and are not at all happy with it. The dissolution factor has increased the stock shares from about 40,000,000,000 to 65,000,000,000 shares. I asked if they were thinking about a stock buy back at these low prices, and was informed they are prevented by agreement with their creditor.
I feel Quarterdeck will survive, there is no Chapter 11 on the horizon. Of course it can not stay in the red indefinitely, no company can survive loosing money. They have good award winning products, a market in twenty nine countries, and a good name. The company has held on to all the developers/source code personal, they need to move in to their new direction, and a new market. If they have the time the company will turn around. I will continue my investment in the company. You will have to do your own careful research and decide, when and where to place your investment capital. Happy trading.
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