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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (14390)	8/10/2000 12:45:30 PM
From: Rusty Johnson	Read Replies (1) \| Respond to of 14631

Briefing.com from Yahoo ... messages.yahoo.com Informix (IFMX) 4 11/16: This database software developer is trading up almost $1 in the pre-market after the company announced organizational changes aimed at improving its market focus by consolidating five business areas into two groups: DataBase Business Operations and Solutions Business Operations. The goal is to streamline operations and is designed to focus activities in optimize the company's software and service mix. Management expects annualized cost savings in the $70-$80 mln range as a result but this will result in a $75-$90 mln charge in Q3. If nothing else, investors are happy to receive some clarity on the direction of the company as little information has been coming from management. The company has been in a digestion period this year as it has dealt with the decline in the traditional database business by stimulating growth in the company's Internet-based initiatives. A large part of achieving this goal was IFMX's acquisition of Ardent which provided the company with an extraction, transformation and load (ETL) tool to offer as part of its database package, moving the company into the hot area of data integration allowing Informix to offer a more complete platform. Although a number of analysts believe Informix overpaid for Ardent...The company's new products look promising, such as Media360 which is a complete media asset management solution and i.Reach which allows organizations to manage enterprise information across intranet, extranet and Internet environments...In spite of all these issues, the company has remained profitable, generated $10 million in cash from operations in Q2 and currently trades at a low price-to-sales ratio of 1.4x and a forward p/e of 9.1x. Assuming a modest 10% increase in sales over the next 12 months along with a moderate expansion of the p/s multiple to 3x within 12 months would result in a per share valuation of $11. IFMX in the $5 range is beginning to look attractive on a valuation basis as some uncertainty about the direction of the company has been alleviated. -- Robert J. Reid, Briefing.com ON24/Briefing.com: Spotlight: Informix biz.yahoo.com Best of luck.