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Technology Stocks : MVSI - AN UNDISCOVERED GEM -- Ignore unavailable to you. Want to Upgrade?

To: Jason Flora who wrote (424)	2/13/1998 4:14:00 PM
From: Bankceo	Respond to of 627

Here's my take on the earnings report. We were predicting about $13MM in revenue and roughly break-even bottom line. We got about that. The company lost sales due to S. Korea, and their Canadian subsidiary is losing money and as they implied, will be sold. The good news is that they may regain the South Korea contracts they lost as SK is now in better shape. This could show up in the next quarter. Also, MVSI signed up two good sized Y2K contracts. They dont report numbers usually at vendors request. Also, MVSI is communicating conservatism in their reporting now. That is their philosophy so I believe the information. This past quarter reflected a great deal of investment expense from the new Socrates people with little pay off. They are going to sell their little hearts out and bring home the bacon. The new business development hire was a good move to build the sales and marketing capability of the company. With a few more of the high margin Y2k contracts, we could see a positive surprise next quarter. Congrats to Paul. As an attorney, we know you won't write what you can't print. I reiterate my BUY recommendation for investors; trading will be based on expectations in the Y2K arena--which currently are high. The risk here is the level of pain they experience from the Canadian subsidiary. It sounds like this is under control, though unpleasant for all concerned.