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Technology Stocks : Hummingbird Comm. (HUMC) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Loucks who wrote (1542)	4/22/1998 9:39:00 PM
From: Bill Arndt	Read Replies (1) \| Respond to of 2018

Paul, I guess I owe you lunch. Give me your address and I'll call the local Domino's for a delivery. I'm afraid I'm not going to have any money left after the stock sinks tomorrow. The earnings were OK, considering Andyne, but shouldn't the revenues have been much higher? Only a 14% increase, including Andyne? That's probably less than 10% for the old Hummingbird. The $5.7 million charge was a surprise as well, but is probably a non event as far as investors are concerned -- it's not like they had to go into debt or issue new stock to bay for the charge. Well, again, I can't say I'm very optimistic about the direction of the stock tomorrow, but then I've been wrong before. Bill.

To: Paul Loucks who wrote (1542)	4/22/1998 11:03:00 PM
From: Martin Goldenberg	Read Replies (2) \| Respond to of 2018

I guess my my mid-point earnings estimate was the closest, off by a penny. Oh well, I wish the actual was higher, but that's reality. Listening in to the teleconference, here are some highlights: - 19 big Exceed deals, each exceeding $100K, totalling $6.6M. - Connectivity revenues to be used to grow data warehousing (press release also says that) - HUM will make more relatively large acquisitions in the data warehousing business - Sales demographics: 56% USA, 36% Europe, 3% Canada - Andyne profit growth expectations are 30% this fiscal year - Connectivity sales slowed down this quarter. Not clear whether this is a trend. The next quarter will tell. Exceed sales may have 13 - 15% growth, then to 5 - 10%. 10% annual Q over Q growth may be likely. Then again, data warehousing growth should take up the slack. - Host Explorer and NFS Maestro represent about 25-30% of total sales excluding Andyne.....No change. - So far Andyne sales are small compared to HUM's. Sorkin would not reveal the split so as not to give competitors any info on this. - Future sizable acquisitions should involve adding about 300 more employees world-wide, in my estimate, up to approx 1000 from 660. - The UK deal represents somewhere below $200 per seat but above $100. Some revenue has been received. There will be more rolling-in in coming quarters. There is some servicing revenue associated with this deal. So the results are as expected. Business venture into the warehousing market is timely. Connectivity sales should bridge the revenue gap as Andyne sales grow. The picture looks bright in the longer term. The barn doors on earnings announcements will not be blown off, I suppose, until at least the next quarter. We can look forward to more acquisition announcements. The data warehousing market was reiterated to be a multi-billion dollar playground. That's the essence. I hope this was informative, Tomorrow's financial news will be interesting. Martin