From RB. Now there are some real nut cases over there, and personally I don't think "our" David comes even close to being as nutty as them.
Some over there, are saying this letter is a phony, well I believe David. He is one of the few real people over there. Own name, even his address and phone have been posted.
-----------------------------------------
By: SIRK
Reply To: 1256 by nazpower
Sunday, 12 Dec 1999 at 6:27 PM EST
Post # of 1349
Dave:
Thank you for your interest in SVRI.
I have included the answers to your questions.
I apologize for the delay as I have been busy preparing for this upcoming
week. I expect it to be fast paced and exciting and had a great deal to get
done in order to be on top of things come monday.
The preceding paragraphs include forward-looking statements. Such
forward-looking statements involve risks and uncertainty, and actual
results of
the Company could vary materially from the forward-looking statements
as a
result of factors including, without limitation, liquidity and capital
resources, new products and rapid technological change, dependence
on certain
customers and potential fluctuations in quarterly operating results and
lengthy
sales cycles. Further information on potential factors which may affect
the
Company's financial results are included in the Company's Quarterly
Reports on
Form 10-Q and the Company's Annual Report on Form 10-K.
Sincerely,
-
-------------------------------------
James Benouis
President and CEO
Silicon Valley Research
OFC:408.361.1010 FAX:408.361.0332
svri.com
-------------------------------------
Q&A For Mr.> James O. Benouis
President and CEO of Silicon Valley Research, Inc
Q Could you tells us how many shares outstanding and what is in the
float at this time and also how many shares are authorized?
SVR has 60 Million shares authorized. Of that 60 Million, 26,221,220
have been issued. NASDAQ defines Public Float as shares that are not
held directly or indirectly by any officer or director of the issuer and by
any other person who is the beneficial owner of more than 10 percent of
the total shares outstanding.
As of 10/27/99, the officers and directors of the Company hold 4,089,029
shares, roughly 16% of the outstanding shares. This includes the
1,765,385 shares I currently hold. The remaining 10,117,819 shares not
in the public float are held by a combination of large individual investors
and funds. The remaining 12,014,372 shares are in the public float.
Q Do you foresee any plans for a reverse split of some kind?
No, I don't. The only attractive reason I could see for a reverse split at
this time would be to get our stock price higher in order to reach the
minimum listing price for the NASDAQ SmallCap Market, which is $4.
We believe we can reach this stock price without splitting the stock, and
preserve shareholder value while returning to the NASDAQ market.
Q In your last filing there was mention of Outstanding Warrants. Could
you explain the nature of these Warrants?
SVR has relied on private placements to finance the growth of the
Company. In past investment rounds, investors purchased stock and
warrants from the Company. This means that most of the warrant
holders are also large shareholders who have been investing in the stock
from the beginning. Essentially, the warrants are an option to buy stock
in the future at a fixed price. When exercised, the warrants are
exchanged for stock in the Company. The proceeds from the exercise of
the warrants go to SVR.
As the Company prospers and grows, the stock price goes up. When
the stock price surpasses the exercise price of the warrant, the investor
may choose to exercise the warrant. The advantage to SVR of financing
with warrants is the ability to bring in capital needed to fund the type of
rapid growth that is possible in a software company in Silicon Valley.
Currently, the potential cash value to SVR of all outstanding warrants is
close to 10 million dollars. These warrants are key to our plans to grow
and prosper. Warrants show investor confidence up front, that the
Company will be successful down the road and hit or surpass the
exercise price. We feel that the warrants are an asset of the Company
that actually makes us more attractive to investors. As we begin to grow
rapidly we have a cash-raising strategy built into our stock price
Q Could you in layman's terms, explain what you have, that is
EXCLUSIVE in regards to LNUX?
There are several EDA (Electronic Design Automation) companies other
than SVR that currently develop and market APR (Auto Place and Route)
products. The companies with the most market share are big and slow
and have shown little interest in porting their products to a PC platform.
Most of the effort that these larger companies have made towards the
PC market has been in the area of NT. NT has not been succesful as a
platform in EDA. Actually, it would be more accurate to say that so far,
NT has been a flop in the EDA market. HYPERLINK
"http://www.isdmag.com/Editorial/1998/CoverStory9807.html" See article
Our new product DCP not only runs on Linux, but is based on
open-source standards like Perl and the GNU C++ compiler. Over 80%
of the DCP source code is open to the user. The open source
architecture of DCP is not only perfectly targeted to the Linux customer,
but is also unique in our industry as well.
Q Is the company now solvent? And do you anticipate being profitable
soon?
Yes, and yes.
Q How do you plan on handling all the new business that your NEW
Products will generate?
The Shearwater Group is our new worldwide distributor. They are the top
independent distributor in the EDA market with an impressive customer
base, which includes over 80% of the IC design houses in the world.
They have 11 offices worldwide, including Asia, Europe and North
America. Shearwater prides itself in offering its customers only the top of
line products in its product portfolio. It is a testament to the quality of our
products that we have teamed up with Shearwater and expanded our
capability to provide customers the very best products on the market.
Securing this distribution relationship with Shearwater is instrumental in
getting our new product in the marketplace quickly. The Shearwater
Group is currently focusing a great deal of their resources on managing
SVR sales and distribution, namely the Linux software, given the present
demand. We have every confidence that Shearwater will be able to
provide the sales and support necessary to deliver our products into the
IC design marketplace with velocity and superior service.
Q Can anyone who is interested get a demonstration of your products?
A sales person from the Shearwater Group will demo software to any
serious potential customer. If an investor or potential investor would like
to schedule a time to visit the Company in person and receive a demo,
they should call and schedule an appointment. Currently, we are very
busy concentrating our efforts on sales and R&D, but would be happy to
accommodate anyone who is seriously interested. |
