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Technology Stocks : Systemsoft Inc. (SYSF) -- Ignore unavailable to you. Want to Upgrade?

To: Brendan W who wrote (3002)	2/6/1998 3:06:00 PM
From: Dave Doriguzzi	Respond to of 3529

Conference Call is (402) 280-9251

To: Brendan W who wrote (3002)	2/6/1998 6:12:00 PM
From: Eric Jorgenson	Read Replies (2) \| Respond to of 3529

I highly recommend listening to the conference call -- (402) 280-9251. I find SystemSoft's outlook more satisfactory than I have in the 20 months I've followed the company. The company continues to face challenges in support and sales--SystemWizard continues to have a drawn out implementation cycle (training of call center staff, migration of SystemWizard to other PC product lines). The following are highlights: Virtually no attrition of engineering staff aside from the USB developers who are leaving as part of the spinoff; company is considering repricing stock options for non-management staff $ 11+ million in cash, January quarter was marginally cash flow negative, the announced charges were non-cash charges, company is on target to be marginally cash flow positive; No further charges are expected April 98 revenues expected to be double digit, company expects to break even in April and July quarters before resuming profitability A second SystemWizard effectiveness survey was performed by one of the top 5 PC manufacturers similar to the one performed for Micron; the results indicated an astounding double the effectivity found in the Micron study SystemWizard won the 1997 Call Support Center product of the year 6 of the top 10 PC makers have licensed (a seventh has apparently licensed as well although this has not been officially announced) Packard Bell was enourmously pleased with the sales of the product that was featured in their SystemWizard commercial Revenue: Asia revenue was down 60% sequentially, 10 of 20 sales people resigned largely as a result of not meeting expectations of the client-centered/account executive approach that SystemSoft is expecting of its sales staff (rather than a product focus); Deb is rebuilding sales force and will likely take advantage of her contacts / good will of good sales people; one of the sales people that left was the account manager so much momentum built up at COMDEX was lost; the company had expected $13million in revenue for the January quarter--the Asian crisis really hurt that; they were seeing $1 million in anticipated business being cancelled on some of the days during January; the shortfall was also attributable to "clearing the channel" The company's two main challenges--support and sales--prompted the hiring of Deb (December) and an Apple support executive (6 months ago); the company faces a tremendous support challenge in guiding clients to implement SystemWizard but these are not significant difficulties--they take time to work out though

To: Brendan W who wrote (3002)	2/6/1998 10:16:00 PM
From: J L Segal	Read Replies (1) \| Respond to of 3529

Brendan, SYSF said that the OEMs are always 1 cycle ahead. They overbought last Q, then pushed out the 4th Q due to conservatism over the Asian situation. My guess is that the insider buying may have been in anticipation of the 2 new OEMs SYSF signed this quarter (1 of them is one of the top 10, meaning SYSF now has 7 of 10 top OEMs). Bob Angelo said that these deals have not been announced yet, but they should be revealed sometime before the final 4th quarter announcement on March 2nd. JL p.s. In case you have not listened to the conference call, it is well worth the hour it takes.