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Technology Stocks : Datastream Systems, Inc. (Nasdaq: DSTM) -- Ignore unavailable to you. Want to Upgrade?

To: Adelantado who wrote (649)	7/27/1999 6:22:00 PM
From: Wright Sullivan	Read Replies (1) \| Respond to of 721

Conference call sounded very positive. A few notes: -eMRO remains miniscule, but purchases have grown 1000% since last quarter, looking for several hundred percent growth next quarter. -Avg. PO on eMRO grown from $250 to $775 since last quarter. -Now charging end user for eMRO module ($1000 for MP2 FS and $10k for MP2 CS) -MP2i and MP5i, fully web-based products are now being released (MP2i is beta). -Consulting continues to grow well. -MP5 slower (too few salespeople) but "should come back strong". -Income drag of eMRO for the quarter was $500,000. ($550,000 expenses minus $50,000 license revenue). Next quarter should see license revenue for eMRO grow to $300,000. -Income drag of eMRO will grow to $1.5 MM next quarter. -Approx. 250,000 items are cataloged and available online through eMRO. -DSTM still tinkering with eMRO model, but fee/commission from distributors remains 2% on each purchase. -Distributors are performing part number conversions for use by eMRO, not DSTM. -7 or 8 of the 30 eMRO customers paid the new license fee for eMRO. -Maintenance.com, Inc. is new wholly-owned subsidiary of DSTM for internet assets. Plans being investigated for maximizing shareholder value of Maintenance.com Inc. include the following: 1. Issue tracking stock 2. Subsidiary spinoff into a public shell 3. Separating DSTM from Maintenance.com Best path forward should be selected in next 2-3 quarters. Cash eps will drop somewhat in next few quarters, but should rise in 2000 (due to eMRO investment then payoff). Sounds too hopeful to me, though the growth of eMRO license revenue is certainly encouraging. eMRO competitors include PSDI (trying similar strategy to DSTM but operating from top end of CMMS market), Arriba, and _____ (didn't catch name, can someone please supply this). The last two were described as targeting the whole biz-to-biz e-commerce space, including MRO, but they are starting with easier targets like office supplies, according to DSTM. DSTM indicated that the MRO space is trickier, and that DSTM has a decent chance of dominating MRO e-commerce. Auction aspects of maintenance.com mentioned and said to be going well ($3,000,000 of items on auction now). DSTM working with surplus vendors to get their stuff on BizSurplus.com (DSTM site). Don't think this is showing cash flow yet but DSTM is very hopeful, that the first with the most (a la e-Bay) will win out in the business auction space. The above notes are all from my understanding of the conference call and may contain some inaccuracies. Comments anyone? I remain very pleased with DSTM as a business.