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Technology Stocks : INTERFACE SYSTEMS (INTF) GETTING INTO EBPP? -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (544)	11/14/1999 3:03:00 PM
From: TLindt	Read Replies (1) \| Respond to of 1203

2nd Q. 2 things. Nero noted that revenue performance at the mid-year point was impacted by the expected lower sales of Cleo Enterprise Networking (EN) software tools as well as Interface's printer products. "We experienced lower revenue from Cleo EN products due to relatively unpredictable order flow from our major retail industry market segment. While we anticipate Cleo EN sales revenue to decline $2 million for the current fiscal year, we believe it should rebound sharply next year just as it has in the past. & "We are further encouraged," Nero added, "that sales of our Document Server product and our new Internet products, although a small percentage of the total, have increased more than 50% for the first half of the year." Observation; By mid year they were expecting about a 10% decline in Sales, the CLEO EN of $2 Million is about a 10% decline and Internet Stuff was was up 50% Y over Y. ....... 4th Quarter... "Consistent with our stated strategy, we transformed our revenue mix in fiscal 1999, de-emphasizing non-strategic business units in favor of focusing on our high-growth Internet software business," Nero said. "As anticipated, overall revenue declined due to the divestiture of our printer service business and to the return of Cleo EN revenue in fiscal 1999 to historical average levels from its fiscal 1998 peak. At the same time, revenue from our higher-margin L2i software products, although just one component of our total, grew substantially as a result of several new customer orders in the rapidly-emerging Internet bill and statement delivery business." Robert A. Nero, president and CEO, said revenue from L2i software solutions increased five-fold in the fourth quarter versus the same quarter last year, and grew nearly 300% for the full year, reflecting strong market reception of the Company's proprietary software products that facilitate the presentation of bills and statements over the Internet. Observation; They came in with a revenue decline of about 1.5 Million nearly as expected. But if you look back to mid year the Internet stuff was up 50% Year over Year. Look what Happened in the 4th Quarter...if you would have taken the mid year growth rate you could have projected then if they sold a $1 in Internut stuff in 1998 they would finish this year with $1.50 in Internet sales, but in actuality they came in near $3. That's really what the story is with this one. What these two releases tell me are internet sales are booming, but they don't tell us what they are. I mean IF they were 1% of gross sales last year and now over 3%. OR were they 3% last year and now 9%. The obvious question here is what percentage of the total sales are they? This is the Segment with the Highest Margins so it's an important Number to know. That use to tick me off with CKFR they never split out that kinda stuff, after bitching on the Boards a few times they soon there after split out revenue segments by division. INTF should do the same..IMO. Because you really need to see how the changing mix is effecting the outcome when it comes to the bottom line.