Hi Mike...
Here's some comments on the Citizen article :
>> According to investors pouring more money into the once-troubled satellite broadcasting company, IDC is in a turnaround situation.
I'm not sure about you, however I have never been consulted regarding
IDA's situation
>> And second quarter results prove it.
1 Quarter does not establish any pattern
>> For the year to date, revenues have almost doubled, and IDC is showing a net loss of only $93,687, compared to a loss of almost $2.3 million for the first half of 1997.
It's still a 'loss'
>> "Our profitability this quarter, although relatively modest, ends a long run of losses
That word 'modest' should be changed to 'miniscule'
>> and demonstrates our restructuring efforts are starting to be effective," says Ron Clifton, IDC's president and CEO.
That remains to be seen
>> new focus on public relations. Mr. Clifton says the company has
always been strong technically but needed work when it came to
selling itself.
Nothing that we don't already know
>> And according to investors, IDC's return to profitability is concrete proof Mr. Clifton's strategy is working.
Should read 'according to BOM and CAV'
>> The first WorldSpace contract, valued at $4.7 million, was one of the reasons for IDC's surprising turnaround. According to Mr. Clifton, IDC's revenues will likely double to $10 million for the fiscal year ending January 31, 1999, and he says it's likely the WorldSpace contract will account for 40 to 50 per cent of the total.
Talk about putting all their eggs in one basket!
>> IDC is also laying the groundwork to become a major player in the area of internet bypass, with new orders for their solution to the "World Wide Wait." An alternative to expensive fiber optic networks, IDC's data broadcasting product SuperFlex means customers can communicate via satellite at rates of up to 40 megabits per second -- that's more than 700 times faster than the most sophisticated dial-up modems.
The share price is still falling.
>> "In the next three years there will be an explosion in the demand for internet bypass technology," says Mr. Clifton. "These systems are being selected now and we're right at the forefront."
That remains to be seen
>> Investors say they are confident IDC's turnaround is not temporary, and Mr. Clifton agrees.
Of course, you and I were never asked.....
>> "It's only starting. The reality is that the opportunity out there is pretty well limitless," he says. "It's a growth market and there aren't enough hours in the day."
We've heard this all before..... There might not be enough hours
in the day, but there certainly has never been enough value in
our shares (and the big question still is WHY?)
>> That said, IDC is determined to grow in an orderly fashion. "We have a plan to be an $11 to $12 million company, but you can't sustain
that growth, it's dangerous," he says. "We don't want to be boom-bust."
They haven't yet posted a yearly profit and already they have
grandiose plans to expand in an 'orderly' manner. I think we
should consider selling them Brooklyn Bridge.
>> Accordingly, IDC's plan calls for the company to double in size over the next three to four years.
What about the share price? Or perhaps investors aren't included.
>> "We've stopped the bleeding and a backlog is starting to form," says Mr. Clifton. "I'm very excited. We have a hell of a future."
Do you agree with this statement? Just sounds like hype to me.
Are you planning to come to Ottawa for the annual meeting? |
