____________Tech's shareholder letter to ConSyGen Investors. __________
Dear fellow investors,
I am sure that all of you are very upset at the lack of performance of ConSyGen and the
failure of management to keep you aware what is going on. Although the current stock
price may not indicate it, ConSyGen is actually in better shape today than it has ever been,
with many potential block buster announcements in the near future.
The NASDAQ listing
=====================
The primary question on everyone's mind is the NASDAQ listing. The company filed on
Oct. 20, 1997 and we have not heard anything from NASDAQ or the company since that
date. The official word from NASDAQ is that ConSyGen's listing is "still pending". when
asked approx. how long the process usually takes, the answer is - "the listing process
usually takes anywhere from 6 to 8 weeks once all the required documentation has been
filed." From what I have been able to gather, although ConSyGen originally filed in late
Oct, the company did not file all of the required documentation until much later. I believe
that one of these late documents was an up to date shareholders list that was not provided
until later and the 10Q which was not filed until Jan. 14th, 1997. >>
sec.yahoo.com << One of the most important things NASDAQ
looks at is for all the required filings to have been made. I also believe that the way
ConSyGen went public, through a reverse merger into a shell, requires more scrutiny on the
part of NASDAQ and this may also be one of the reasons for how long this process has
taken. However, if we use the Jan. 14th date as a starting point for when ConSyGen
provided all of the required documentation, then the 6 to 8 weeks period would put the
usual allotted time for the listing to the 2nd or 3rd week of March. I feel we are very close
to hearing something this month.
Motorola ???
===============
For several months we were all waiting to hear how the pilot projects for Motorola had
fared. On Feb. 17, 1997 we all we very pleased to hear that the testing of the pilot was
deemed a complete success >> biz.yahoo.com << Ms.
Marge Davies, Motorola's project manager for the project, stated: ''I am impressed with the
ConSyGen 2000 toolset and its ability to identify and list missing code, to give us complete
exception reports, and to make code compliant for the Year 2000 with such speed and
accuracy.''
The successful testing of this code was a major step for ConSyGen. Having
done a successful project for #24 on the Fortune 50 list will help the company's credibility
with future clients. More importantly, ConSyGen has now established credibility within
Motorola itself, who has approx. 100 million lines of code that need to be made Year 2000
compliant.
Another particular detail to note is the number of ex Motorola executives who are popping
up at ConSyGen. We all know about Ron Bishop's extensive background with Motorola, but
most recently we saw Jim Vittera and Steve Kelly join ConSyGen. >>
biz.yahoo.com <<
Mr. Vittera was appointed vice president and director of North American Sales and
Marketing. Vittera joins ConSyGen after serving 25 years in various engineering, sales and
marketing positions with Motorola.
Mr. Kelly was appointed vice president, General Counsel and Corporate Administration.
Kelly joins the company from Motorola, and has previously served as corporate counsel at
Datapoint and Fujitsu.
Another one of the most notable additions to ConSyGen was Daniel G. Queyssac, President
& Chief Operating Officer at ASM America, who was appointed as one of ConSyGen's
external board members. >> biz.yahoo.com << Mr.
Queyssac has been involved in the high tech arena throughout his career. His previous
positions include President at TechnoPart; President & Chief Operating Officer at Novellus
Systems, Inc.; Chief Operating Officer at SGS-Thompson Microelectronics; President &
Chief Executive Officer at SGS Semiconductor Corp.; and several positions at Motorola,
the last being Director of International Operations.
The infusion of all these ex-Motorola personnel should be a strong indication of what we
should see coming in the near future. ConSyGen's managerial team looks like it has been
hand picked to work directly with Motorola. I don't consider this a coincidence, in my
opinion, we are due to hear some great news about the ConSyGen / Motorola relationship.
Telenor
===========
On Feb. 11th, 1998, ConSyGen announced the completion of a 500,000 line project for
Telenor, a client of Chase Technology. >>
biz.yahoo.com <<
The Telenor Group comprises the state-owned joint-stock company Telenor AS and its
many subsidiaries. With more than 19,000 employees and an annual revenue of (NOK) 22.2
billion, Telenor is one of the largest companies in Norway, and is Norway's market leader in
the fields of telecommunications, data services, and media distribution.
Telenor has over 25 million lines of code that need to be made Year 2000 compliant.
There is no question in my mind that the 500,000 lines given to ConSyGen is just a initial
project.
Telenor has already put the code back into production and based on this projects success, it
is my opinion that we will see lots more code flow to ConSyGen. The Chase / ConSyGen
alliance provides a great source for companies to find, fix, and test their Year 2000
conversion.
Agiss
=========
Probably one of the biggest disappointments so far, has been the lack of performance on
the part of Agiss. Due to Agiss's close ties with the Canadian Government there was an
expectation that Agiss would be able to supply many millions of lines of code. Based on this
idea, ConSyGen signed a exclusive agreement with Agiss for a significant portion of
Canada.
As time has gone by, we have seen many undelivered promises on the part of Agiss and,
IRA, its PR firm. Agiss was suppose to open its conversion facilities back in Nov. of 1997.
Since that time we have heard many new dates mentioned, but none have been kept.
Agiss's top management meet with ConSyGen a few weeks ago. It seems that, according to
Agiss, they believe that the Canadian Gov. is going to start releasing contracts by the end of
March and that they are in line to win some projects. They have also stated they will open
the ConSyGen / Agiss conversion center in April.
Since it is true that the Canadian Gov. has been very slow to award projects, I feel that
Agiss should be given this short period of time to see if they can produce what has been
expected for quite some time. However, if this is just another delay tactic on their part and
they continue not to produce anything, it is my opinion that ConSyGen should
TERMINATE its exclusive agreement with Agiss and seek a new alliances in Canada with
companies who can produce the business.
SCB Computer Technology
===========================
SCB is one of ConSyGen's alliance partners and has a client list made up of large
organizations and Fortune 500 companies.
This is what Mr. Jeff Richard's said about SCB at the Westergaard Conference
>>http://www.exchange2000.com/~wsapi/investor/reply-1296120 <<
[ "SCB computer technology is very heavily involved in the IBM world. They're out of
Memphis, Tennessee... they are concentrating on companies such as Federal Express,
International Paper, National Electrical Supply and so on. These are people who need
their services, we supply the conversion piece to their services" ] - Jeff Richards,
ConSyGen's V.P. at the Westergaard Conference.
In July of 1997 ConSyGen completed a pilot project for one of SCB's Fortune 50 clients.
SCB has a very good relationship with this particular client. It is my opinion that SCB will
eventually be awarded this project, in which they will use the ConSyGen toolset to convert
a significant amount of the code.
Most recently, SCB announced that they have formed a strategic partnership with
Honeywell for Year 2000 services >> biz.yahoo.com
<<
SCB Computer Technology, Inc. (Nasdaq:NM/SCBI) today announced that the Company,
through its subsidiary The Partners Group (TPG) located in Scottsdale, Arizona, has signed
an agreement with the Space and Aviation Control Business (S&AC) of Honeywell
Inc.(NYSE:HON - news). Under the agreement, TPG will provide service and support to
facilitate the compliance conversion of Year 2000 related requests from S&AC.
SCB has already set up a conversion facility at Honeywell. They currently have the capacity
and resources to handle the initial project tasks. However, as most of you know, resources
are drying up at a record pace and, in my opinion, it will be a matter of time before they will
have to send code to conversion houses for remediation. Since The Partners Group (TPG)
is located in Scottsdale, ConSyGen is in an excellent position to provide conversion services
to TPG and Honeywell.
Chase Technology
====================
We have already seen the Chase / ConSyGen partnership pay off in the Telenor project that
was brought to ConSyGen by Chase Technology. I believe that we have only seen the
beginnings of the quality of Chase's clients and we will see much more code flow to
ConSyGen as a result of this partnership.
Europe is way behind in the race to become Year 2000 compliant, and a fast, accurate, cost
effective method for converting code will be in huge demand once the flood gates open.
Millennium of Singapore
==========================
On Oct. 8th, 1997 ConSyGen announced a teaming partner in Singapore >>
biz.yahoo.com <<
Under this agreement, Millennium IT Pte. Ltd. will market ConSyGen's fully automated
Year 2000 and software conversion services into Singapore and the rest of South East Asia
and will install Conversion Centers in Singapore and Manila.
Most recently, Jeff Richards took and extended trip to Asia. He has been gone for approx. 3
weeks, and is due to return on March 16. There is an urgent need to introduce an
automated approach to making code Year 2000 compliant throughout South East Asia. The
problem of identifying and correcting code is just as great in Asia as anywhere else in the
world. It is my opinion that we are about to see some great developments for ConSyGen to
come out of Asia and their partnership with Millennium.
================
There are many great things happening with ConSyGen. The company has started to
announce contracts and has now established the foundation that can be built upon. The
latest additions to ConSyGen's managerial staff and to the board of directors, should be a
good clue as to the direction in which this company is headed. Through all of these new
additions, one thing has remained constant is ConSyGen's extremely low burn rate. At
approx. $4 million per year, it would not take too much to make this company profitable.
The quality of companies ConSyGen is talking to, should be a indication of the revenues
that will come in once the flood gates open on the Year 2000.
:
:
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This shareholder letter solely expresses the views of Tech and not that of ConSyGen or that
of ConSyGen's management. This shareholder letter also contains certain forward-looking
statements regarding the anticipated financial and operating results of the Company. The
Company's actual results may differ materially from those projected in any forward-looking
statement. These forward-looking statements may be affected by certain risks and
uncertainties described in the Company's filings with the Securities and Exchange
Commission. |
