Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Firstwave Technologies, Inc. (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: Kailash who wrote (409)	2/10/1998 1:10:00 AM
From: Kailash	Respond to of 1205

Questions on the report: What is in-process R&D? The NetGain acquisition? If we take that out, the 97 result is a 16 cent or so loss, a slight improvement over estimates. I wonder if analysts will the see the (0.30) or the (0.16). Under costs and expenses, what's the difference between the cost of software revenue and sales/marketing/product development? The increased software sales is the high point; the cost of software revenue is way down -- does anyone know which costs have been cut? They're pretty dramatic cuts. Even with the slightly improved results and the nice sales figures, I'll be surprised if analysts or institutional investors react much to this tomorrow. It looks pretty good for the long-term investor though. What is it some software companies do -- list their development costs as assets, on the grounds they now have a product worth at least the development costs? If Broc had done that, the figures would have looked a lot more impressive. On the other hand, this way it is easier for them to show sequential improvements. Any predictions for the next couple of months? If Brock continues to contain its cost and maintains sales and service of their existing products at the 4Q rate, they will show a small but steady profit. Any NetGain profits would come in addition. On this scenario, we should see a very slow climb in the price. More optimistically, if they manage to keep up the growth rate in sales, and NetGain is a hit, 1998 will be a very profitable year and the price will surge towards pizzaland. Downside risks? The 4Q sales were a blip, NetGain flops. In this scenario, Brock sinks slowly into oblivion. Seems kind of unlikely right now. Kailash