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StockHouse.com News Maker Interview - Apr. 15, 1999
"We're expecting a significant improvement in our fourth quarter
results."
An Interview With Frank Iadipaolo, Chief Financial Officer and
Secretary to the Board of Directors of Microforum Inc.
• • •
In the past, StockHouse had interviewed the CEO of Microforum [T.MCF] and the President of iFront,
a wholly owned Microforum subsidiary. Many investors are making comparisons to Microform, with
similarities to the StockHouse interview conducted this past January, with the President of Bid.com.
In this illuminating interview, Microforum's CFO, Frank Iadipaolo, previews operating results for MCF's
Q4 and how Internet revenues impact the company's bottom line.
Microforum Inc. (www.microforum.com) is a leading Internet applications, and technology services
corporation providing a broad range of electronic commerce and integrated marketing, creative and
database services.
On Wednesday, Microforum's Software Guaranty division announced a software deal with the National
Bank of Canada. National Bank of Canada is an integrated financial group geared to providing
comprehensive financial services to consumers, independent businesses and large corporations in its
core market, as well as specialized services in niche markets around the world.
StockHouse: What's the big news in Microforum right now?
Frank Iadipaolo I think the big news is that the word is starting to get out that we are a serious player
in terms of the Internet and e-commerce. We have made some announcements about our intent to
lodge a 20-F. The reason for that is we want to deal with US placement opportunities in terms of our
stock. I think we want to also position ourselves for an opportunity to get on NASDAQ. It's a positioning
exercise, which gives us an opportunity to access that capital market where we think we should be.
StockHouse: Do you have brokerage firms now following you in the United States?
Frank Iadipaolo We've talked with houses down there and we're achieving increased awareness and
sensitivity to our stock. We haven't aligned ourselves with any one brokerage (firm). There's a number
of firms that like it (our story). All I can tell you is we haven't done anything beyond have conversations
with a number of US brokerage firms, but nothing formal to disclose from that. As we noted in our
announcement, we have engaged a firm in the US to help us with the 20-F.
StockHouse: The law firm?
Frank Iadipaolo The law firm. I think they're fairly well recognized and accepted down there (in the
U.S.). That coupled with the contacts we've made allows us to take this story to the next stage.
StockHouse: And the next Stage is going on NASDAQ?
Frank Iadipaolo The next stage is certainly positioning ourselves to go on NASDAQ. We're not there
yet. That takes time to get things together. It takes 45-60 days to get on. We have a minimum share or
a minimum bid price threshold to deal with. It's something we're looking at very seriously. We have
accounting issues to deal with in terms of US accounting practices.
StockHouse: Are your revenues increasing on a month-to-month basis?
Frank Iadipaolo Our revenues are going according to plan. They have
been increasing. We've been seeing the kind of returns in terms of a
mix of revenues from the Internet side that we had included in our plan
for the fourth quarter on a go-forward basis. We're tracking according to
plan.
StockHouse: Regarding new clients coming aboard, how's that panning
out?
Frank Iadipaolo We have a high expectation of being able to grow our
revenues. We've got a lot of - we've got a lot of items. We've got a lot of
discussions. We've got a lot of pipeline business. But nothing is in until
it's confirmed, although we're very optimistic.
StockHouse: How is your iFront subsidiary doing?
Frank Iadipaolo Our Internet Frontier division is going according to plan. It's resources have been
augmented through the acquisition of Software Guarantee Inc. Those two companies have now been
amalgamated and are now operating as one unit. We're very optimistic about iFront in terms of
E-commerce combined with SGI. We think together, and individually, they represent a pretty formidable
package in terms of E-commerce and financial services on the Web.
StockHouse: What is it about your company that investors really want to know?
Frank Iadipaolo We plan on becoming a profitable, Internet-based, marketing solution company.
Profitable. That's our goal, and that's where all our efforts are being devoted.
StockHouse: We talked about your revenues. How are your expenses relative to your last quarter?
Have they gone up dramatically?
Frank Iadipaolo Relative to our last quarter? No. We expect those expenses will go down significantly
relative to our last quarter.
StockHouse: Are you looking at an earnings pop on your next report?
Frank Iadipaolo We're expecting a significant improvement in our fourth quarter results. Our
statements aren't going to be audited - our audited numbers won't be available before June. But, we
expect to be issuing something in connection with fourth quarter shortly.
StockHouse: Is that because of a drop in expenses or a rise in revenues?
Frank Iadipaolo It'll be because we expect a combination of both - and also the mix of revenues. We
expect that the mix of our revenues represented by Internet will be substantial in the fourth quarter.
StockHouse: Are you saying your fourth quarter Internet revenues are going to jump?
Frank Iadipaolo Our revenues for the year are going to be in line with what the analyst expectations
have been for Microforum for the year - the portion of our revenues derived from the Internet for fourth
quarter will be higher than in the past.
StockHouse: Have you achieved, or are you close to achieving, a jump in fourth
quarter revenues?
Frank Iadipaolo What I'm saying is that our fourth quarter will show an increase in
the revenue mix from Internet, and our fourth quarter on an overall will show a
significant improvement in operating results, which we had planned going into the
fourth quarter.
StockHouse: Are you on target or ahead of target for fourth quarter?
Frank Iadipaolo We are on line with the target. We're on line to meet the target.
StockHouse: Thank you, Mr. DiPaolo. |
