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Technology Stocks : Phone.com [PHCM] -- Ignore unavailable to you. Want to Upgrade?

To: Clint E. who wrote (166)	7/23/1999 8:39:00 AM
From: Mark Oliver	Respond to of 1080

I'm surprised there's no comment from the conference call. Yes, they had a loss of .62 Vs estimates of a loss of .67, which is better than nothing, but yeah. Revenues up 420% and up 90% sequentially. 73% gross margins this quarter, but expect that to drop to 60% range due to hiring, but 70% should be achievable long term. They project 10 to 15% sequential growth in rev quarter over quarter next year. 55% of revenues from Licensing, 32% maintenance and the rest from consulting. They have 36.8 million in deferred revenues. About 3 million of that is for handset royalties and the rest from operators. Most revenues are for licensing that must be used within 2 years. DDI used deferred revenue when they had more users than expected. 31 new operators signed. 10 new operators signed this quarter. They've got a footprint of nearly 1/3 of the world now. They are in talks with all the operators. They estimate only the low six figures for enabled users, but that is expected to rise quickly. Many new phones are coming with the service enabled and require no sign up to get the customer started. Japan is the most aggressive at rolling out service. 9 months ahead of deployment in the US, with Europe 3 months behind Japan. Mail and messaging are biggest apps, with games being very popular so far in Japan and corporate Intranet and online banking in Europe. YES, the provisioning sale announced this month was a very big deal. It's a new revenue stream and one that is making PHCM the system of choice. Very cost effective to the operators. They are all very excited. Will start to see revenues next year. DDI and roaming partner IDO in Japan have experienced much faster growth than expected. They added new licenses ahead of schedule in June. Also look to LG Semicon in Korea, Omnitel in Italy, SFR in France, and Bell Mobility in Canada for strong growth. Suggest Euro sales kick in starting Sept and US around Christmas. Sales currently are #1 Japan and #2 US. They seemed to be very pleased, as did most in Q&A. Yes, they do compete with Nokia and Ericsson on some levels, but they are just introducing first generation systems Vs PHCM's 4th generation and they are mainly strong in GSM. Hoping I got this right. I listened in on the internet replay. It is a little scratchy, but being in Australia, I love these opportunities to hear what's said. Looking forward to your comments. Here's an article of interest, "Ads everywhere as Web goes wireless" msnbc.com Regards, Mark