Don & ALL:IMPORTANT INFO - My trip to FNTN - Part 1 - Overview
(or Happy Birthday Tomato):
On Monday night, I had a 3-1/2 hour meeting with Financial Intranet at their Ardsley, New York facility.
Michael Sheppard & Maura Marx talked to me about contracts; how remuneration actually works and how much in real dollars a typical contract means. We talked about Form 10s, form 144s, IDB, trade shows, competitors, the internet site, the intranet site, missed timelines, sales, sales staffs, management expansion, press releases (and the lack thereof), other vertical markets beyond finance, predictions about the future of the comapany, video status, advanced charting status, children, Vienna in the Spring and much more. I even asked Michael what his favorite color was. It was a trick question to loosen him up and get him to accidentally tell me something he wasn't otherwise ready to share.
FYI - Blue. Same with Maura.
They kept their cool and preserved their secrets (most of them).
Before my visit, I viewed Financial Intranet as a tiny little high-risk BB startup company with a great idea, limited equity funding, a limited quantity of people (but with lots of brains), good contacts and a prayer.
After my visit:, I view Financial Intranet as a tiny little high-risk BB startup company with a great idea, limited equity funding, a limited quantity of people (but with lots of brains), good contacts and an answered prayer. READ ON.
Near the end of our interview I asked what I thought was just a feel-good fluff question. One for the road.
"What does 'Strategic Partner' mean to you and how does it differ from "supplier?"
Michael said "I think Siemens already answered that question for you, but let me answer by saying a supplier sells you a box and that's the end of the connection." I replied, "Well, I once bought an audio console from Siemens' Neve division for my recording studio. They sold me the box and then hung around for a week to set it up. Is
that what you mean by partner?" Michael answered "No, Siemens is here to stay." I said "Why would they just STAY (thinking aloud).. unless they are involved with FNTN on a much deeper level? Do they
have a financial stake in FNTN?" Michael replied "Siemens has no financial stake in the company". I asked "Does Siemens own shares in FNTN" To which he replied "I have no intimate knowledge of anyone (at Siemens) owning shares."
Michael was thoroughly enjoying torturing me as I tried desperately to pry well beyond my business, even if I was a stockholder. I think he honestly felt sorry for me when he had to answer with a "no comment" or a "soon" or "very soon." to many of my more pointed or loaded questions. The "very soons" became almost a form of merciful
concession.
It was nearing 7:30PM (I had been there since 4 o'clock) and Michael asked me if I'd like to see the computer room. I responded with a tired but sincere "yes, please."
Then, I got what I was looking for.
We walked down the halls past countless other hi-tech companies who share the converted pharmaceutical company headquarters with Financial Intranet. Down the interior steps we went, past more businesses (including a potential future associate we met in the hall) stopping at an understated entrance door at the end of yet another hitech-laced hallway.
The door to the computer room swung open revealing an extremely complex array of computer machinery inside a "clean room." Sitting by terminals connected to the myriad of metallic brains were two engineers. Michael introduced me. As the techs turned around to shake my hand I noticed the words "Siemens Pyramid" embroidered on their shirts. "So you guys actually exist" I joked. One of them replied "Well, actually we need new shirts. We'll just be called 'Siemens' as of October 1st. They were working on a complex back-up system. It included standard UPS safety from spikes, brown-outs and
blackouts, but also utilized multiple simultaneous mirrored disk protection. The plan is to design a system that has enough safeguards to insure data safety and security while providing a stream of almost uninterruptable service. These fellows speak a language that quickly went beyond my comprehension, but it was music to my ears.
Michael and I retreated to the upstairs office where we continued to talk about Siemens and why they stay for dinner.
It was in the closing minutes of our meeting that I wore them down enough to further define the scope of the relationship between FNTN and SIEMENS.
From what I was told FNTN is currently working with various International divisions of Siemens. Down the road, the vision for FNTN product roll-out could span from The US to individual European markets and all the way to the Pacific Rim. Maura quickly qualified my World domination dream by saying "Today, our concentration and focus is on the American financial sector."
I asked how they intended to reach such an expansive market with their limited means.
The answer was - "outsourcing". Incentivizing top salespeople with commissions - educating and exciting them about the uniqueness of the products offered. Michael said "We're currently using Siemens resources from around the world." Maura added " Siemens overseas is aware of us and they are watching our development,
because they're interested in our future .. we are working with a number of International divisions of Siemens including Germany, France, Belgium, Canada and the US. Siemens presence all over the world is certainly a help".
The success of FNTN is apparently very important to Siemens because FNTN will become a model for future Siemens inroads. On this point Michael said "They (Siemens) understand our business plan... We are the launch and become the showcase for Siemens in this country. "
Maura summed up the relationship with this comment, " With their (Siemens) extremely deep pockets and commitment to the success of Financial Intranet, they'll continue to supply the ongoing technological reach. It will keep Financial Intranet ahead of the
curve. (Siemens') development of new technologies will allow us to unveil new services that will be beneficial to our customers."
Based on my own DD over the last few weeks and culminating with Monday's meeting, it is my conclusion that we have invested in a company run by good, talented & honorable people. Financial Intranet is comprised of a handful of very smart, very connected people from various and critical trades - from financial to video to sales.
Siemens supplies the technology.
Financial Intranet supplies the applications.
Thanks for your time.
More to come.
Wally |
