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Technology Stocks : CrossKeys Systems Corp [CKEY and CKY/TSE] -- Ignore unavailable to you. Want to Upgrade?

To: uel_Dave who wrote (546)	9/22/1999 6:59:00 PM
From: uel_Dave	Read Replies (2) \| Respond to of 792

Glenn, Quick notes from Crosskeys CC of 9/22/99 Q100 (All errors and omissions are mine; just listen to cc again and others to post the corrections, thanks, David) ------ Steve Spooner - CFO : Very gratified with the revenue growth of 47% good mix of revenue from : North / South America : 62%, Europe / Africa - 32% and Asia / Pacific - 6% Revenue of Core products was up $5 million Good cash position of $53 million ( CDN ? ) and $75 million in assets SG&A was 62% vs. 39% ?? ( someone will have to listen to CC again ) There was also discussion of channel NN business 70%, 11% other channels ( spoke too fast for me ) DSO improved to 48 Book to bill - 4th best quarter in history 20% from new customers increased in sales improved customer service staff build business as quick as possible increasing R&D of multi platforms ------------- Ian McLaren -CEO - very positive about Q101 -creating momentum =a piece to go and understand challenge -revenues is growing and very positive -revenue mix is changing -starting to see big sales / new partners -continue to watch for more of these deals during next Q - more fully blown product company -good first quarter -improve on mandate -several more like Nortel & EDS - will hire 100 ( actually ad is for 130 ) - already hired 40 people - very pleased with headway -hired 5 more sales people in US all in all Q1 reflected what we hoped to expect and implement strategy ----------------- Q&A ----- Jim ? S&G Cowan Q: Jim: Ian, look at new channel; which ones will ramp up ; e.g. Nortel , Ascend ? SIs EDS, Logic A: Ian: Six to nine months to come on into programs - Ian pleased to show up with prospects and into production in 6 to 9 months Q Jim: Steve what is run rate of operating for new hires to ramps up. A : Steve: Expense SG&A / R&D was $7.5 MM CDN; expect to increase by 30% over current run rate to be in at $10 to 11 MM --- Deepac from Spockett ?? Investments Q- Deregulation in telecom / regional breakdown ?? what is it? Steve S. A: 62% NA/SA; 6 % A/P and 32 % Europe Ian ?? feedback : Sales with resolve good; new ones to sign up logic regional for Europe; engaged in most European carriers, between off with Europe ; Asia? Distributions agreement? Prioritization" US, Europe and Asia ------- Bert ? St. James Investments Q? NIS thing ramping up? NI vs SI? A: Ian: See a much quicker sales cycle; both in network performance NI first then SI next. new partners - hiring plan to support channel market - dedicated market quick start program - Have product get product launched to start Major contacts; expect 1 or 2 multi million per quarter, although most will be $200k - Do not think Y2k will be a factor; industry is moving too fast - no time to shut down - although is depends on customer -backlog is growing -encouraging - heavy weight into core products -large resolve & cross resolve products ---------- Denis A&B ?? Q Why R&D decreased to $2.5 MM from $3 MM A-Steve:Let some people go ( contractors ) in Vancouver; however need to ramp up R&D hiring now; not the right skills sets; we are building for the long term - Q1 2000 - no guidance change - however please call me later Q200 continue to better top line growth Bert said he had to revisit model; results are better than expected -------- Jim another Q - follow-up A:Steve - Book to Bill above 1? Yes it is. We have a strong book; however we do not want to be too bullish -Continue to have challenges to fill top line growth ----------------------