Co. Name : Computrac
Exchange : AMEX
Symbol : LLB
Telephone : 972-234-4241
52-wk High/Low : 1 1/16 - 3/8
Avg Volume : 11,818
Mkt Cap : ~6M
FY ends : 1/31/99
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Information contained here is compiled from LLB's 10QSB filed
on 9/14/98, News releases on 11/12/98 and 11/30/98, and a
conversation with Mr. Sonny Margolis on 12/1/98.
Any errors contained in this post are mine. This post is for
informational purposes only. Do your own DD before trading any
stock.
-Tony
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Description: LLB is engaged in the development and marketing of
software designed to assist legal firms in billing. Company is
currently in 4Q99
Market size: The primary market is the 7,000 legal firms in the
United States. This is an increase from the companies traditional
market of only the larger firms (700). Although some systems
have been placed with customers outside the legal field, and the
software is customizable in terminology, the company does not
pursue such customers.
Product description: The major new product is the "CompuTrac (R) Law
Firm Management System for Windows(R)" System prices are between
$20-100K. LFMS was released on Nov 1, 98 and sales of LFMS are not
included in the Q3 results. The company will also release a new
product for large firms during the Spring of 99. Price for that
will range from $75-300K, which is a decrease from the previous
generation. Response for the planned new products has been positive
from the existing customer base.
Sales: Sales of LFMS have reached $400K as of 11/30/98. There are
a number of new contracts in progress, and the company has a target
of $250K in new contracts per month. Sales in the legal market
can be time intensive, with the client taking up to a year to
choose a system. LLB did not exhibit at COMDEX and has no plans
to exhibit at trade shows outside the legal field.
Profitability: The company expects a profitable 4Q98. New sales do not
cause an appreciable increase in development or administrative costs.
Previous to the release of new products, the company had been
subsisting on service contracts with exisiting customers. Profit
margin on the new contracts will approach 85%.
Competition: There are 3-4 competitors in the midsize field, and
2 in the large firm field. The company has not yet estimated
it's market share.
Debt: There is no appreciable long term debt. Approximatly $150K
remains on a mortgage.
Listing and SEC: LLB is listed on the AMEX, and has no plans to move
to NASDAQ or OTC. The company is current with it's SEC filings.
Stock structure: There are 2M preferred shares authorized, 0 issued.
There are 13M common shares authorized, of which 6,988,706 have
been issued.
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2Q Balance sheet (unaudited July 31,98 in thousands)
ASSETS
current
Cash and equivalents: 202
Short term investments: 2880
Account recievable, net of
doubtful acct allowance 693
Other 331
total current 3997
PP+E 1370
Land 254
Capatilized software 1913
Other 464
TOTAL ASSETS 8019
TOTAL ASSETS LESS SOFTWARE 6106
LIABILITIES
current
accts payable 103
accrued expenses 219
deferred system revenues 184
current portion of mortgage 88
total current 595
long term portion of mortgage 70
TOTAL LIABILITIES 665
Shareholder equity 7353
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3Q Consolidated statements of operations (cut from yahoo)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three-month period Nine-month period
ended October 31, ended October 31,
1998 1997 1998 1997
Revenues:
Systems sales $ 177,312 $ 129,546 $ 484,525 $ 843,160
Services and support
1,000,113 962,216 2,896,208 2,959,797
1,177,425 1,091,762 3,380,733 3,802,957
Costs and expenses:
Cost of system sales
97,655 49,267 249,022 574,921
Cost of services and
support 112,071 72,373 262,093 223,708
Amortization of
capitalized software
92,766 121,146 278,298 410,002
Operating expenses
327,196 315,086 955,303 900,000
Selling, general and
administrative expenses
658,576 801,132 2,169,962 2,231,050
Software research and
development costs
103,400 126,534 324,958 302,406
1,391,664 1,485,538 4,239,636 4,642,087
Loss (214,239) (393,776) (858,903) (839,130)
Interest income, net
30,852 45,309 112,530 171,255
Net loss ( 183,387) ( 348,467) ( 746,373) ( 667,875)
Loss per share -- basic
and diluted ( .03) ( .06) ( .12) ( .11)
Weighted average number of
common shares --
basic and diluted
6,243,651 6,312,633 6,256,288 6,295,461
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