*AV* SYCR
I do not have any advice for SYCR tommorrow but have some items
would like to share, which may be from a different perspective. Jeff
Mitchell and others are far more versed in the software realm so
their read on the following should be requested.
First, an old article that you may or may not have seen. What interests
me is the conversion prices and the agreement made
relative to these debentures. Remeber that the "Ides of March"
is when the first conversions can take place. At the present
price, I do not beleive that any exercise will occur. However,
a specific set of price targets have been set by the $10 million
debenture holders. Please read on.
============================
SYNCRONYS RESTRUCTURES TERMS OF CONVERTIBLE DEBENTURES
78 Percent Of Outstanding Issue Placed Under One-Year Conversion
Restrictions
Culver City, Calif. - October 14, 1996 -- Syncronys Softcorp
(OTC: SYCR) today announcedthat it has executed a definitive
agreement with the holders of its outstanding 10% convertible
debenture issue to restructure the terms to nclude a one-year
conversion restriction.
The Company reported that 100 percent of the debenture holders,
representing the full $10 million in convertible debentures
outstanding, have agreed to place 78 percent of that aggregate
outstanding debenture issue, or $7.81 million, under the newly
amended terms. Under the terms of that amendment, $7.81 million
of the debentures are prohibited from being converted into
Syncronys common stock for 150 days. Thereafter, 15 percent of
such $7.81 million of debentures may convert into Syncronys common
stock in each month following the expiration of the 150-day period,
with the last such debentures convertible only in the month beginning
331 days after the amendment became effective. Additionally, the
fixed-price element of the conversion formula has been changed to
$3.50, and the corresponding warrant strike price has been changed
to $5.22. All other terms remain unchanged.
Syncronys said that the term amendments reflect its institutional
investors' confidence in the Company's strong fundamentals and
growth potential.
Headquartered in Culver City, California, Syncronys Softcorp is a
leading developer of PC and Mac memory enhancement and performance
software. Syncronys maintains a home page at www.syncronys.com.
============================================
Second, the controversy over SoftRam and Windrenalin is not what
catches my eye. I am more interested in the Burn it, WinKrypt, and
Eyecatcher software packages. As a PC user, these are more important
to me than how fast you can speed up my hard drive or CD ROM drive or
create more RAM. RAM is dirt cheap so just go buy the additional RAM.
WinKrypt - an encryption/decryption program that looks relatively
easy to use for email privacy. Will it replace PGP (I use this
and it is great with wide acceptance but has its own set of issues).
Burn it! - the complete eradication of a file when you want to
delete it and not allow those prying eyes any opportunity to
restore it or undelete it.
Eyecatcher - a simple, catchy method of catching your attention
on your screen such that when email arrives you are visually
contacted.
None of the above are state of the art programs that are unique
to SYCR but are "goofy" enough and inexpensive enough to catch
on like many of the Screen Saver programs distributed (like After
Dark, etal.) or the add in programs we seem to purchase to
"improve " Microsoft products.
Third, the following are the abbreviated financials of SYCR
from November 1996
SYNCRONYS SOFTCORP ANNOUNCES FIRST FISCAL QUARTER RESULTS
For the quarter ended September 30, Syncronys posted a net loss of $1.59 million,
or $0.11 per share, on revenues of $127,000 compared with net income of $4.1 million,
or $0.29 per share, on revenues of $10.5 million in the year-earlier quarter.
The Company's financial position remains strong with $6.6 million in cash and
cash equivalents, and a current ratio of 1.5 to one.
Syncronys anticipates strong revenue growth beginning in the current quarter
as compared to the prior quarter. The Company has already received purchase
commitments for the first four of the five products to be shipped by leading
distributors Ingram Micro and Tech Data. Products in distribution are being
carried by major retailers and catalog houses including Computer City, Comp USA,
MicroCenter, Electronics Boutique, J&R SuperCenter, MicroWarehouse, Elek-Tek,
Media Play, Multiple Zones, Communication Expo, Computer Town and others.
Rainer Poertner, chief executive officer, commented, "I believe that the current
quarter represents a pivotal point in Syncronys' history as we move from
intensive research and development to aggressive sales, marketing and a sustainable
level of new product R & D. We are launching an exciting line of cutting-edge
software products, all of
which are
strongly competitive and several of which redefine their respective market categories.
SYNCRONYS SOFTCORP
Balance Sheet (unaudited)
September 30, 1996
Assets
Current assets:
Cash and cash equivalents $ 6,574,405
Trade accounts receivable, net 147,235
Other receivables 2,000,000
Income tax refund receivable 566,739
Inventories 57,441
Prepaid expenses and other current assets 561,737
Total current assets 9,907,557
Property and equipment, at cost, net 123,361
Note receivable, excluding current portion 146,670
Unamortized debt issuance costs,
excluding current portion 794,689
Amounts due from related parties,
principally shareholders 148,500
$ 11,120,777
Liabilities and Stockholders' Deficiency
Current liabilities:
Trade accounts payable $ 963,116
Accrued expenses 4,616,622
Product recall liability 1,123,000
Total current liabilities 6,702,738
Convertible debentures 11,275,180
Stockholders' deficiency: 1,502
Common stock, $.0001 par value. Authorized 75,000,000 shares;
issued and outstanding 15,019,293 shares
Additional paid in capital 5,076,181
Accumulated deficit (11,934,824)
Total stockholders' deficiency (6,857,141)
$ 11,120,777
SYNCRONYS SOFTCORP
Statements of Operations (unaudited)
Three Months Ended September 30
1995 1996
Net revenues $ 10,543,174 127,192
Gross profit 9,238,999 115,232
Total operating expenses 2,380,161 1,399,606
Operating profit (loss)6,858,838 (1,284,374)
Net income (loss) $ 4,122,957 (1,588,360)
Net earnings (loss) per share
$ .29 (.11)
Last, the financials do not appeal to me but as long as you are
invested here, I would sit it out. Too many products have hit the
store shelves and you need to see if this is a real turnaround for
the company. The debenture holders seem to think so. An their amended
agreement almost hints of a >$ 3.00 price down the road.
What is everyone else's opinion??????? |
