SAF,
Well, that's one way to get to over $ 5.... :-)
As I understand it, reverse splits are not generally viewed as positive. However, it should come as no surprise since it was voted on and approved back in November. The good part is that they don't see the need for the additional shares (at this time).
Also, the timing seems a bit interesting. Maybe I'm reading too much into it.... With the IAD Conference; IS Expo in Las Vegas next week; 1 for 10 reverse split effective March 30 & earnings due within just 9 trading days (March 31), things should get interesting. (It will either be the last of the bad news or the beginning of good times ahead.)
Once again, since CCEE CEO Dan Del Giorno stated twice that Q4 would be profitable - (Once midway through Q4 and again just after the Q4 closed) - anything less would be a disappointment, IMO.
Recap:
From the January 14, 1998 Press Release:
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Computer Concepts Corp. Ranked by Deloitte & Touche LLP as Ninth (9th) Fastest-Growing Technology Company in United States
Bohemia, N.Y. - - January 9, 1998 - - Computer Concepts Corp. (NASDAQ:CCEE) was ranked by Deloitte & Touche as the ninth fastest-growing technology company in the United States for 1997 as determined by its National Fast 500 National Study.
...
"We anticipate significant revenue growth in 1998, especially from our patented Internet data mining software, d.b.Express Internet Information ServerT, which has recently been licensed to British Telecommunications' Syncordia Services division, and our SOFTWORKS, Inc. subsidiary's new SST product line which includes a full suite of Year 2000 date conversion software products" stated Dan DelGiorno,Jr., President and CEO of Computer Concepts Corp.
DelGiorno added, "We currently anticipate fourth quarter 1997 profitability, and are currently implementing our 1998 strategic plan which is designed to increase 1998 revenues substantially."
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From November 14, 1997 - Q3 Press Release:
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Daniel DelGiorno, President and CEO of Computer Concepts, stated, "The results through September 30, 1997 reflect the development and marketing of Computer Concepts' revolutionary d.b.Express Internet Server technology and its SOFTWORKS subsidiary's SavanTechnology, which includes a full suite of Year 2000 date conversion tools, in addition to the establishment of its Professional Services division headed by Greg Garbe. The results of these endeavors, coupled with anticipated fourth quarter 1997 revenues therefrom, lead management to believe that the results of operations for the fourth quarter 1997 will be profitable."
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Here's the Press Release:
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Wednesday March 18, 4:41 pm Eastern Time
Company Press Release
Computer Concepts Corp. Announces One for Ten Reverse Stock Split
BOHEMIA, N.Y.--(BUSINESS WIRE)--March 18, 1998--Computer Concepts Corp. (NASDAQ:CCEE - news; CCC) today announced that it will implement a restructuring of its capital structure with a reverse split at a ratio of one share for ten shares with a record date of March 27, 1998, and an effective date of March 30, 1998. This action was approved by the Company's shareholders at the annual shareholders' meeting held on November 27, 1997. At that meeting the shareholders also authorized the Board of Directors to increase the authorized capital of the Company an additional 150,000,000 shares, however, the Board has determined not to take that action and is only implementing the reverse split referenced above.
Management believes the restructuring and resulting higher stock price and lower number of shares outstanding will make the Company's shares more attractive and available for investment to a larger group of investors, including certain institutional investors which do not invest in low priced stocks.
Daniel DelGiorno, President and CEO of Computer Concepts, stated ''This action is being taken following input from various advisors to the Company, and should position the Company for growth in 1998 and beyond.'' He added ''The continued success of the Company's SOFTWORKS products and recent developments in the acceptance of the Company's d.b.Express technology are anticipated to generate record revenues in 1998 and a new level of interest in the investment community.''
The Company further noted that its trading symbol, ''CCEE'', will have an additional letter, ''D'', appended to it for twenty trading days beginning March 30, 1998. This action will result in shareholders having only 1/10th as many shares, but the per share price will concurrently be increased by a multiple of ten, so a shareholder's total investment value in CCC will remain the same until the new stock price moves up or down.
This release contains forward looking statements which are based on current information and on management assumptions, and are subject to other important factors disclosed from time to time in the company's Form 10-K and Form 10-Q , Registration Statements and other Securities and Exchange Commission filings including specifically, among other factors, changing marketing and economic conditions, timely roll-out of its products by licensees and acceptance of the company's Internet based d.b.Express, SST and Year 2000 technologies. Actual results may differ materially from the forward-looking statements in the release. Additionally, there is no assurance that the action being taken regarding the above mentioned reverse split will result in additional investment interest in Computer Concepts Corp. stock by the investment community or by institutional investors.
Computer Concepts Corp., headquartered in Bohemia, New York, develops software tools including d.b.Express that assist end users in the retrieval and visualization of all types of data. Computer Concepts' d.b.Express Internet Information Server(TM) has recently been licensed by British Telecom, and has been integrated with British Telecom's Syncordia Services' C-View software application which will allow BT's customers to access and analyze the high volumes of technical and account information available within BT's Internet-based databases without having to download the data to their own computers. The new d.b.Express Internet Information Server(TM) and JAVA Applet have overcome a major Internet problem, that of high data volume and limited bandwidth, currently responsible for the lengthy delays associated with data downloading.
SOFTWORKS,Inc., headquartered in Alexandria, Virginia, is a leading global provider of IT solutions for the enterprise and a wholly owned subsidiary of Computer Concepts Corporation. Founded in 1977, SOFTWORKS responds to the data management needs of organizations worldwide, supporting customers in more than 50 countries with solutions for the Year 2000 problem, enterprise performance management, multi-platform data and storage management, and professional services. SOFTWORKS customers include nearly 80 percent of the FORTUNE 100.
Computer Concepts and its subsidiary employ a staff of 217. For more information about Computer Concepts and SOFTWORKS, call (516) 244-1500 or visit Computer Concepts' web site at www.computerconcepts.com or SOFTWORKS' web site at www.softworks.com.
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Contact:
Media:
Fielding Dupuy (212) 627-0814
or
Gary Kolesar, VP Investor Relations
Leigh Athans - Investor Relations Manager
Computer Concepts Corp. (516) 244-1500
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--Dennis |
