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Technology Stocks : Spyglass -- Ignore unavailable to you. Want to Upgrade?

To: Rob Terrell who wrote (1053)	8/14/1999 1:41:00 PM
From: Oska	Read Replies (1) \| Respond to of 1412

Shortly after the last earnings were reported, I listened to the associated conference call on streetfusion.com. I found the approximate hour very worthwhile. It was available only through August 4. I suggest it though for those interested in keeping a close eye on SPYG and others for subsequent conference calls. I did take some notes though, mostly of CEO Doug Colbeth's remarks; I have rewritten them into something more coherent and share them: Acadia, the solution center SPYG has established with with General Instruments in Lexington, Massachusettes, was ramped up in nine months. (My spelling may be incorrect in places as I heard and not read.) Along with the Navitel center, it is profitable. WAP microbrowser exclusive with Nokia is exciting for SPYG because it gets SPYG in the door with other firms. Surfwatch should not be overlooked. It is aiming to be an "Internet content management firm." It is being changed to a subscriber service/recurring service. It is the "preeminent" brand in its sector and has been issued a patent. It is used in 4,000 schools and 400 corporations and contributes 10-15% of SPYG's revenues. Colbeth said they will bolster it in the next sixty days; watch for an announcement. Options include bringing Sufwatch into public or entering into a strategic partnership. The Internet filtration market is around 20,000,000 to 30,000,000 USD. Anticipated market growth is 7 x -10 x by 2001 and 2002. Result will be a filtering market of 150,000,000 USD in 2-3 years, not including content services. There are about eight to nine players. Past quarter revenue rather balanced; SPYG not too dependent on any one area. Revenue sources include licensing from Prism, devise Mosaic, and small handset. They have a diverse technology. End of quarter: 170 employees. The breakdown is Navitel: 20 Acadia: 19-20 + 30 Professional Service: 40 Core engineering: 35-40 Surfwatch: 20 On the wireless area, Colbeth commented that Phone.com exclusively focused on small handset market--platform approach like in the PC market. Motorola deal is not part of revenue for last quarter. SPYG has delivered contracted product, awaiting for Motorola's action in implementation. =-=-= I have watched SPYG levitate through several layers of the market capitalization atmosphere. Some of the results have been quite independent of Company performance. I am looking toward the long haul though with faith in the firm's management and the business model they have embraced. Peter Lynch has often asked whether one believes in a firm's story and what inning is that story. I believe we are early in the game and the story is compelling. All my best, Osman.