Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MTIC - Is this the next EMC? -- Ignore unavailable to you. Want to Upgrade?

To: Dan Hamilton who wrote (3690)	5/24/2000 12:56:00 PM
From: BostonView	Respond to of 3748

However, due to a disproportionate amount of revenue being generated by a relatively small core group of salespersons, the impact of increasing commission accelerators throughout the year, and substantial annual bonuses earned in the fourth quarter as a result of the Company's strong margin percentage growth, the plan resulted in a considerable increase in commissions and bonuses quarter-over-quarter, which negatively impacted the Company's earnings. Effective with the new fiscal year, a new compensation plan has been put into effect that, while allowing top performers the opportunity to earn a competitive compensation, is designed to be quarterly driven and much more predictable in its impact on sales expense. Uh-oh...it looks like somebody really screwed up at MTI, and I'm not only referring to their recently hired and newly trained lame-duck sales force. Somebody put together a sales plan that, apparently, back-fired. Their top performers who grabbed the big deals without degrading margins made a killing on bonuses and accelerators. Wasn't Tom, with his sales management background integral to the "plan" when it got put together? Wasn't it Tom who signed off on the European managers who delivered a goose egg last year and have now been fired? Uh, isn't it Tom who's running the whole show now? I still say they should have lured a whole bunch of sales champs in with oodles of stock options last year. Now they're stuck with reps that have been on the road for almost a year now, with -- apparently -- no sign of a pulse, a "new" sales crew starting over again in Europe, and a non-existent OEM and distribution channel (Wasn't it Tom who boasted at last Q's conference call, "we're a direct sales organization!"). After six months on the job it appears Tom will, indeed, give Earl a run for his money as most-likely to drive the business into the ground. What a mess. BV