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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (10611)	5/1/1998 2:22:00 PM
From: Howard Armstrong	Read Replies (1) \| Respond to of 14631

Software company accounting practices cannot be trusted ... and Robert's excellent post here explains why. IFMX may simply be robbing Peter (previous quarters) to pay Paul (this quarter). The small profit this quarter is NOT because of increased sales, but because of reduced costs (read: layoffs, voluntary terminations) and accounting mumbo-jumbo. Keep in mind also that license revenue, the core of IFMX's business, increased only about 4% after a disasterous Q1 1997 ... most of the revenue increase was in services (consulting, training). Services revenue will start to tail off if license sales continue to grow at this anemic pace. IFMX has lost a lot of employee talent in R&D, sales, and elsewhere, and IFMX products continue to be also-rans in the RDBMS business. The core IFMX product, Online Dynamic Server 7.3, is a nice product, but ORCL, IBM, and MSFT also have nice RDBMS products. IFMX management has done a nice job getting the stock from $4 to $9, but investors are not fooled into thinking the company has actually recovered. I think $10 is a good price to bail out of this stock. I see no more upside.