Conference Call:Very good,almost excellent,kick-ass.<vbg>
Denis:
Yeeees! I did listen to the call and I noticed a marked difference between this one and the last one,such as:
Last time there were only 4 or 5 analysts calling in and most of them
no names,this time all the heavy weights were there including the
dimwit from Sound View, the others present were:-
Morgan Stanley
Goldman Sachs
Prudential
CS First Boston
Everen
Robertson Stephens
Piper Jaffray
Sothwest Securities
H & Q
Sound View
and couple of smaller ones.
Last time the conference call lasted for not more than half an hour,this time it took over an hour.I took notes,2 pages worth,but now the problem is I can't read the damn stuff I wrote.<g>
Anyway some of the highlights I recall from memory are:
1)i2 now has some marque names in the international business world as customers,some 10 in numbers from around the world.
2)A coup for this quarter- Got HP as a customer,this business worth
11 million dollars.
3)Some of the other big name customers:
HP (new),DELL,CPQ,Gateway,Toshiba,Frito Lay,Casio (new),a major Japanese brewery (new-name not given),Herman Miller,Safe Steel,Hawthorne,Ford (Visteon ?),GE Aircraft,Bethlehem Steel,Navistar (new license) and many others.
4)Competition-SAP, a whole lot of rhetoric but nothing to show for it.
5)ERP-Not a threat at the moment as none of them has viable products
to compete with i2.
6)New products pipeline.
7)Order pipeline better than any other quarters in the past.
8)R&D- Very high emphasis on R&D,out of the 2003 employees some +400
are in R&D thereby the ability to bring in new products faster than
the competition.
9)i2 now in leadership position in supply chain segment.
10)Not seeing as many ERP vendors in the field competing for supply chain business.
11)Sales: actively hiring more talented sales people,start seeing
more applicants from ERP segment for the position.i2 still needs more
qualified sales people as there is a shortage of them within the company (this is what I have inferred)
12)IMI associtation-to provide a simplified,less time consuming,and less costly ERP application to potential customers who do not want to
spend the time and money going for SAP or similar products.
13)When asked about how Y2K spending will affect i2 business,Sidhu said he considers this as an opportunity as many companies will delay costly and time consuming implementation of ERP products and this gives i2 an opportunity to gain more market share as i2's products are easier to implement and there is rapid realization of value for i2 customers.
14)Lots of interest from potential customers and existing customers for the new eBPO products as evidenced by the interest shown by participants at Planet98 conference and other indications.
15)Advantage i2- Rapid implementation and RAPID REALIZATION OF VALUE, and existing customers and potential customers are finally realizing the value their products.
16)Average selling price/deal= 1.1 million dollars, and excluding any large deals (as one large customer is sold most every quarter) it will be in the $400,000 range.
The Sound View guy showed up at the last minute and not very friendly (I thought) and Prudential guy wasn't too friendly either.Everyone else was very enthusiastic about the results and congratulated the company for having an excellent quarter,most seemed a bit surprised.
I hope this will kick start the stock price tomorrow and the coming days. Well with my luck may be not,some dimwit probably will come up with something negative I am sure but anyway I think I will make money with this, not that I am not already.,g>
PS:i2 also thought they will be comfortable with 500 mil in rev for 1999 but some of the guys wanted to pin-down them for an exact number but I think they did good in not giving outrageous estimates for next year so that these guys won't come up with unreasonable estimates.Intel did the same thing,they didn't give the analysts any guidance for 1999,told them to wait till end of Q4 for any meaningful numbers.The Prudential guy tried to come up with a 'flat earning' scenario based on 500 mil and 10% margin but the idiot didn't seem to get that i2 didn't want to commit to anything at this point, much to his chagrin I might add. |
