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

To: bsl113 who wrote (10702)	5/5/1998 4:36:00 PM
From: Gene Lee	Read Replies (1) \| Respond to of 14631

Bryan, 4.5% is not an impressive number, but considering IFMX's financial situation, I still think it is a GOOD number. If I am a new IFMX customer, the first thing I want to make sure is the financial stability of the vendor, the customer needs long term support and service, they want to make sure the vendor won't disappear after initial purchase which is only a small portion of the total project cost. With all the bad news of IFMX's financial statement and Qt-to-Qt losses, many potential customer are in wait-and-see position which definitely impacted the number growth, no doubt. Bob F. realized before he can grow IFMX, he has to make the current business profitable which is the bottom line for any business to survive. Only after that, he can concentrate on how to increase sale, and that is what he is going to do next. BTW, ORCL had only 6% license growth last quarter. IMHO, IFMX trading lower after earning reflected split perceptions towards future growth. To short term player, the only purpose to hold IFMX @10 is to see it move to 12 in less than week or they sell and the price falls. Therefore, a short term price change, in many case, is not related to any fundamental change but short term supply/demand. The price is slightly lower than last year, but the major difference between this year and last year is last year IFMX was downtrend, and this year we are UPTREND, and the uptrend has not changed so far.

To: bsl113 who wrote (10702)	5/5/1998 6:14:00 PM
From: Mark Finger	Read Replies (1) \| Respond to of 14631

>>If we are comparing Q1-98 to Q1-97 and saying it only grew 4.5% >>are we not taking into account that last years license growth >>may have been stronger because Q1-97 was prior to IFMX's problems >>becoming obvious on financial statements. I'm not sure... Last year Q1 was when everything fell apart. They had been running a shell game and Q1 was when it was apparent that things could not be "spun" away. They announced on April 1. Actually Q1 was one of the worst quarters (along with Q3, which was during the restatement period). The original licenses as reported was only about $65M, which was raised to the $85M after restatement (service revenue was unchanged). Basically, Q1 97 probably may be the worst quarter for closing deals in years. I predict that license revenue will increase in Q2 over Q1, but the y/y comparison to Q2 97 might not be as good, because there was a revenue spike in Q2 97 due to the closing of 2 major deals in Europe. Mark