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Technology Stocks : Red Brick Systems -- Ignore unavailable to you. Want to Upgrade?

To: John Ritter who wrote (127)	1/17/1998 2:39:00 PM
From: J L Segal	Read Replies (3) \| Respond to of 304

John, I too was impressed with the way the stock was running up before earnings, especialy since Morgan Stanley, (the investment banker who brought REDB public), was consistently showing up as the highest bidder on the NASD as the stock was trading. Apparently, the conference call was not too positive about the future. Although I did not listen to the call, I did have the opportunity to read some of the comments, which I will summarize: Positive: -Earnings & Revenues for the Q were above analysts consensus (WorldCom was mainly the reason, @ $2.4MM) -Operating margin returned to the black (6%) -Added 23 new customers (big names, such as WorldCom, Boeing, NEC North America, BellSouth, Jiffy Lube, TCI, etc...) -Some key wins over ORCL -Management changes -Recent announcement that HP will resell Red Brick data warehouse products and services through HP's America Local Products Organization. (helps expand REDB's market reach) -Encouraged by recent feedback from the channel -REDB 5.1 has reached its final stages of beta testing and should be scheduled to ship by mid February. Negative: *No CEO at meeting! -per Paine Webber: "More troubling was the fact that the CEO was unreachable following the call and that the new CFO (hired 12/3 had little to offer to explain in the sudden negative outlook for the company" -The company remains in a period of transition - shifting its focus to a solutions based sales model and a broader product line. -Tough market. Customers have a high cost of entry into the data warehousing area. -Continued sales & marketing investment IMHO, something doesn't add up, and investors hate uncertainty. REDB has been rumored for some time as a buyout target. They have the best data warehousing product in the market, and they are a pure play. Did anyone on this thread hear the conference call? JL