JW, INOW finally filed their 10-K last week. It makes for some fascinating reading. I posted the following on the UNDISCOVERED NET STOCKS...Not yet BOOMING! thread:
InfoNow (INOW), which filed its Form 10-K last week, provides "...a
modular suite of web-based inquiry management services delivered on an
outsourced basis via the Internet...(its) services enable companies to
respond to consumer or commercial inquiries in a targeted, one-to-one
manner and effectively integrate third-party channel resources such as
dealers or resellers into the selling process. InfoNow's services can
respond to inquiries received across a client's enterprise, including
their Internet site, call center and Interactive Voice Response (IVR)
systems."
The 10-K and the related proxy materials can be found at:
sec.gov
sec.gov
Highlights from the 10-K and proxy materials:
1) The company reported revenues of $2.5 MM in revenues for the year
ending December 31, 1998, an increase of 137% from the $1.1 MM reported
in the prior year.
2) The company had a backlog of $4.8 MM at the beginning of this year
and estimates that it will generate revenues from that backlog of
approximately $3.4 MM in 1999. Additional revenues will be generated
from existing contracts and additional contracts signed in 1999.
3) The company expects to be profitable beginning in the second quarter
of this year. Their infrastructure is in place (and fixed) and can
support a significant amount of new business without adding any
substantial new costs.
4) They have a blue chip list of clients, including American Airlines,
Apple, Bank America, Cisco, Citibank, Compaq, 3Com, FedEx, Maytag,
United Health Care, NationsBank, HP, IBM, Intel, UPS and Visa.
5) Michael Johnson, their CEO and President, spent five years as a
consultant with McKinsey. Michael Basch, their Vice President of Sales
and Marketing, was a founding officer of Federal Express and conceived
the FDX tracking and tracing system.
6) They appear to have spent most of 1998 getting their house in order
and positioning the company for some explosive growth in 1999. They
raised $1.906 MM in financing in 1998 and they are looking to raise an
additional $4.0 MM this year and move to a Small-Cap listing. See the
press release at: biz.yahoo.com
7) Their auditors lifted the "going concern opinion" that was attached
to their 1997 numbers.
8) There were only 7,009,243 shares outstanding as of March 10, which
gives the company a market cap of approximately $31.5 MM. There are
outstanding options for 2,153,553 shares at an average price of $1.38
per share and outstanding warrants for 532,863 shares at an average
price of $2.03 per share. It appears as if options on 194,000 shares
were exercised subsequent to year end. These shares are included in the
March 10 numbers. (I am a little unclear about the origin of the post
year end issuances as there is no disclosure in the subsequent events
section of the audit report.)
9) As of December 31, 1998, the company had NOLs totaling $7.246 MM.
10) On the negative side, the company registered most of the insider
shares last year, though this does not appear to be a pump and dump.
The above is JMHO and I would encourage everyone to do their own DD. I
have been accumulating this stock for the last two months and I have
been surprised that it has not popped up on anybody's radar screen. |
