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Technology Stocks : CSGI ...READY FOR TAKE-OFF! -- Ignore unavailable to you. Want to Upgrade?

To: angel who wrote (2147)	1/14/1998 9:34:00 PM
From: tech	Read Replies (3) \| Respond to of 3391

angel, glad to see you are still here. CSGI's year end is in May ========== Jun. Jul. ----> (Q1) Aug ========== Sep. Oct. ----> (Q2) Nov. ========= Dec. ------------------------------------- 1998 --------------------------- Jan. ----> (Q3) Feb. ========= Mar. Apr. ----> (Q4) May. ======== So, Q4 of 1997 for them is in Mar. - May of 1998. Right now the are in Q3 of 1997. CSGI went public last year in Sep. '96 (Q2) 1996 Ron Bishop joined the company in Jan. '97 (Q3) of 1996 and during the months following his appointment as President & CEO, ConSyGen's primary goal was to extend the capabilities of their toolset. Bishop's letter to shareholders > exchange2000.com In May of '97 (Q4) of 1996 ConSyGen had modified its toolset to address Hewlett-Packard environments. > exchange2000.com In June of '97 (Q1) of 1997 ConSyGen completed the Millennium H.P. Conversion Project. exchange2000.com They also announced a y2k project for Strategia. exchange2000.com Strategia has been very slow in delivering code to ConSyGen and this project is still in the works. In Aug. '97 the end of (Q1) of 1997 ConSyGen announced the pilot projects for Motorola. exchange2000.com In Sep. '97 (Q2) of 1997 ConSyGen announced the 3,000,000 line Y2K / Migration project with LSI > exchange2000.com The very same day they also announced the $5.1 million subscription, which gave them enough funding for working capital and general corporate purposes, including sales and marketing, and also qualified them for NASDAQ. exchange2000.com In Oct. '97 (Q2) of 1997 ConSyGen announced the completion of the Motorola Pilots. exchange2000.com In the same time period they also announced the application for NASDAQ. exchange2000.com Now we move into Dec. '97 to Feb. '98 (Q3 of 1997) [the current Q] so far, in Q3 CSGI has announced two projects. Monday December 29 ConSyGen Is Awarded Year 2000 Contract for Client of INSI exchange2000.com Tuesday January 13 ConSyGen Is Awarded Year 2000 Contract for (IDP) Inc. exchange2000.com ---------------------------------------------------------------------------------------------- The projects that are revenue generating are: =================================== Millennium - (finished in Q1 of 1997) <-------( Profit Sharing ) Strategia Tennessee Project - (started in Q1 of 1997 still in progress) LSI - (Merril Lynch) Project (started in Q2 of 1997 still in progress) INSI project (just announced in Q3 of 1997) IDP - project (just announced in Q3 of 1997) ConSyGen has been mainly in R& D mode until about Jun. 1997 (Q1) of 1997. At that time they finished the Millennium project and proved that the toolset worked. They started to market their toolset, but funding was still limited. In Sep. '97 (Q2 of 1997) ConSyGen announced the $5.1 million subscription which qualified them for NASDAQ, but more importantly, gave them the funds to spend on a sales and marketing. The company, today, filed their 10Q for (Q2 of 1997) Revenues in Q2 were only about $121,000 However, none of the projects that were listed above have had any impact on the Q2 numbers. Most of the projects were just recently awarded and will fall into Q3 results. The Millennium project was a profit sharing project and revenues from that project are dependent on the sale of the software package that was corrected by ConSyGen. These revenues from Millennium will flow in as the package is sold. The LSI project is both a Y2k and Migration project and will take longer to complete than a simple y2k conversion project. It should be finished by the end of Q3 1997 (Feb. '98). The Strategia Tennessee project was started in Q1 of 1997, but Strategia has been very slow to deliver code to ConSyGen and I feel that most of the revenues from this project will also fall into the Q3 results. The latest two contract announcements, with INSI and IDP were just recently made and I feel we will see some of the revenues from them in Q3 of 1997 (Feb.'98) and the rest may fall in Q4 of 1997 (May.'98). During the last year ConSyGen has continued to sign many alliances. Agiss, Strategia, Millennium of Ohio, INSI, SCBI and most recently Millennium of Singapore and Chase Technology We have also seen that most companies have been budgeting in 1997 to start spending in 1998. ConSyGen is now positioned very well to start wining some major projects. CSGI has done over 14 pilots for their various alliance partners ( including two pilots for Motorola), and I feel we will see many of partners and clients start to come forward with the full projects. Once the flood gates on the Y2K open, we should see many projects come in at a consistent pace. I feel that with the current projects CSGI should show a good profit in Q3 of 1997 (Feb.98) It is very hard to estimate what will happen in Q4 of 1997 (May 98) =============================================== I feel that by March of 1998 the flood gates will open wide. ConSyGen, combined with all their alliance partners, should be awarded many, many, projects. We can not forget that the price per line of code will go up dramatically once the bulk of the business starts to flow in, and that if each of CSGI's alliance partners only win 4 projects of (3 million lines each) in all of 1998, that would equal more than 84 million lines of code. We are only 3 weeks into 1998 and we have already seen two project announced. I feel that the pace and magnitude of the projects will pick up steadily. There are also many "wild cards" that still could come in at any given time. These include the possible contract with Motorola, the Canadian Gov. contracts to Agiss, and the other 14 or so pilots CSGI has done. At any given time a combination of projects for several large projects could close. We also have SCBI who deals with Fortune 500 and large organizations, Chase Technology who has many high profile clients with millions of lines of code. ConSyGen has a burn rate of approx. $4 million per year and it won't take much to make this stock run up dramatically. At an avg. price of $.25 to .30 per line of code, it would only take about 4 million to 5 million lines of code to break even in each Q. Don't forget that the price per line will shoot up once the flood gates open and there is no telling the amount of the size of the projects that may come directly to ConSyGen, or to all the alliance partners. all I can say is stay tuned!