The major revs are coming from CCM. As the CEO said in the last Q report, it has increased more than 200% from last year.
I have been following this company for the last two years since they got CCM from Germany. CCM is a software that allow IT officers to remotely install and upgrade system and application software. This is an unique product that others do not have, it means no competitor. Most importantly, this product created by German Engineers has long been proven to work flawlessly at large companies such as Deutch Telekom, which is the AT & T equivalent in Germany, where CCM controls about 50,000 computers as mentioned in 1996, now it could be more. At the beginning of this year, GTE has selected CCM for rolling out several thousand computers in their internet division, indicating its acceptance in US. GTE mentioned that it would use it for other divisions in the future. A recent distribution deal with Dell is allowing them to access more US companies. Large companies will deal perpetually with system and software upgrade for thousands of computers, therefore, they need CCM to save money in order to improve their profit margin. These days, computer service persons are costly. It is hard to find qualified persons without the intensive training. CCM can replace many of them, and CCM does not need Medical Care and retirement plans, paid vacations, sick leaves, and other benefits. In addition, from now to the end of the next year, many companies will rush to solve their Y2K problems. CCM now incudes function to solve the Y2K problem during upgrading systems. Thus, there is a real market demand.
Financially, they do not have debt and will most likely be profitable next year based on their sales trend over the last three quarters. In addition to their cash on hand, there remains a payment of $ 6.5 millions that has yet been received (recognized) by ONTC from selling their firewall division earlier this year. Intellectually, they have recruited many talent and motivated people to their management team recently. Insiders have been buying shares recently. It dropped from 4 1/2 several months ago due to the selling by the leaving chief of the sold firewall division. So, basically, all that investors need is the patience. A good marketing strategy for CCM is all that ONTC needs to be successful. Good luck to your investment. |
