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Technology Stocks : CrossKeys Systems Corp [CKEY and CKY/TSE]
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To: Doug who wrote (424)2/27/1999 8:07:00 PM
From: pat mudge  Read Replies (2) of 792
 
Siemens, its main Customer (other than NN) is winding down its
agreements with CKY. Siemens certainly needs Net Mgt software
like the other Telcos. Why would Siemens do that if CKY was a state of the art Net MGmt Software Co.? It is more likely that they have an alternate source.


I wasn't able to listen to the conference call, but I do know it's far more likely Siemens' decision to wind down the CKEYF contract is related to its own structural changes than anything on CrossKeys' side. Read their CEO's message to shareholders if you have any doubts:

siemens.de

Among other measures:

To boost profitability, Economic Value Added (EVA) was introduced on October 1, 1998 as the obligatory measure of management performance throughout Siemens. Now, the sole criterion of profitability is whether a business unit's earnings exceed its capital cost. Levers for increasing EVA include divesting assets that are no longer needed, reducing inventories and receivables, and pruning the business portfolio. The compensation system for Siemens' senior level management is also being coupled to EVA. If the Annual Shareholders' Meeting agrees, a stock option plan for senior managers will be set up to take effect retroactively as of October 1, 1998.

Based on this I find it hard to believe they've scrapped CKEYF to start at ground zero with a new developer.

Just the same, I'll phone the company next week and ask for clarification.

Pat
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