I see nothing disappointing about this! Earnings estimates were -0.25 I think, but that is irrelevant. Seems to me the revenues are looking good, I just don't know how anyone could have expected more than a tripling of revenues in a one year period. (Based on the six month periods cited in the report.)
Just imagine where the co. would be had they not totally reinvented themselves from a search engine company to an intranet solution provider. Just check out their revenues from 'service'!! Very exciting!!
If they were a search engine co. revenues would be flat and they'd probably be trading at $10. Oh, the market is fickle. But if people start crunching these numbers and then add in a few extra million in revenues based on deals which have already been signed, surely they will figure out the implications for the coming year's revenue figures. OTEXF will definitely be in the black by the end of calendar year 1997. What, me worry? They still have $34 million in cash!
HOPEFULLY SOME ANALYSTS WILL DO THIS FOR US AND WE'LL SEE A GOOD RESEARCH REPORT THIS WEEK!
If revenues double again in the coming year just think about what this will mean for earnings. The next four quarters should look great. Remember, this earnings report doesn't factor in much of the new business the co has signed up, and many of the 'ramp ups' we might expect to see from existing customers. Take the Bell Canada stuff and extrapolate that to their other (and future) customers. There will be new revenues from/through iStar, Siemens, HP, and Netsys, just for starters.
Any new deals they ink will just add to this. |
