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Technology Stocks : Brock International (NASDAQ: BROC, the forgotten stock) -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (854)	11/9/1997 8:43:00 PM
From: Roger A. Babb	Respond to of 928

Investor Meeting, report #1 The question was asked about the impact of the legal settlement BROC won on earnings. It seems that it was a dispute with a client and the settlement prevents BROC from discussing the details. The main effect was that a large receivable was collected and is now cash. This did not affect earnings but only transferred money between accounts receivable and cash. A secondary effect was that an amount was credited to G&A which offset previous legal expenses associated with the case. This amount did increase earnings for the 3rd quarter (part of expenses were in previous quarters). They could not reveal the exact amount, but the small profit would have been a small loss without the settlement.

To: Roger A. Babb who wrote (854)	11/9/1997 8:58:00 PM
From: Roger A. Babb	Respond to of 928

Investor Meeting, report #2 Going into this meeting I had high hopes that the professional analysts would jump on the bandwagon and upgrade BROC to "strong buy" after seeing the potential of NetGain. I had personal discussions with two of them afterwards. While both appreciated the potential of NetGain and more importantly recognized the management turn-around at BROC, they both said "I want to see revenue growth first." They were both very positive and expect this to happen over the next six to nine months. I should note that it was big revenue growth, NOT necessarily big earnings growth they were looking for as a sign to upgrade. They thought it wise to plow revenues and cash assets back into R&D and marketing in order to fuel growth. I also spoke to a broker/account manager. He was very impressed and will be buying BROC shares for his own account and recommending it to others. He was not a technical type but a marketing/finance type and he was impressed with the savy of BROC management.

To: Roger A. Babb who wrote (854)	11/9/1997 10:04:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 928

Investor meeting, Report #3 The NetGain demo was great, very convincing. It really is a big leap ahead. I would guess BROC has a year head start on the competition for the next generation of enterprise SFA products. Key words are net concentric, thin client, TCO friendly. All software resides on the server and client machines need only a browser. NetGain can be much more than an SFA system, it is an enterprise system which can involve all parts of the company with controlled access levels as appropriate to share all types of marketing, inventory, production, financial and other data bases as well as company news and everything the Internet has to offer. And the push technology gives it dynamic updating. SFA software has gone through two generations and is about to start the third: 1. UNIX/character based. BROC was a leader in this generation. 2. Client/server. The current generation, good example is SEBL. BROC late to the table and did not compete strongly. 3. Enterprise/network concentric. BROC has big head start to be the leader in this generation. They have the technical expertise and management in place to pull it off.

To: Roger A. Babb who wrote (854)	11/9/1997 11:16:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 928

Investor meeting, Report #4 We had a long discussion of security and encryption issues. It is recognized as a critical problem but they believe it is handled. Some of the encryption discussion was over my head. They will be placing a white paper about it on the broc.com web site soon. They have addressed three security issues: 1. User access to the server. Multi-level password control that allows users access only to their authorized parts of the system. This part is as secure as the secrecy of the passwords. 2. Encryption of data stream between clients and the servers. This discussion was over my head but I am convinced they know what they are doing. The CTO will be happy to discuss this issue with any knowledgable investor who wants to dig in, give him a call. This is an area where failure would be damaging, must be done right. 3. Protection of both the server and client machines from hackers and virus infection.

To: Roger A. Babb who wrote (854)	11/9/1997 11:24:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 928

Investor meeting, Report #5 Roger's personal profit projections for BROC. I believe that BROC will continue to invest in R&D and marketing over the next three quarters to ramp up NetGain. Thus I am restating my earlier profit projections and now expect no substantial profits until mid 1998, followed by extraordinary earnings growth as NetGain wins market share. But I expect revenue growth starting with the current quarter as these investments pay off. It is possible that revenues may take a small dip in the 1st quarter of 1998 if new buyers start to wait on NetGain which will not be available intil the end of the first quarter.