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

To: Doug who wrote (11078)	6/18/1998 1:01:00 PM
From: Austin	Read Replies (2) \| Respond to of 14631

>>Any clue when the next cycle of growth is expected.? My take varies a bit from Mark's. I do agree that data warehousing (DW) finally has enough success stories and that it has "crossed the chasm". This is a great opportunity for Informix because they have the products and the experience to do any size of DW, including terabyte level ones. Now they have to take advantage of this opportunity. The DW development and marketing group has been somewhat isolated within Informix in the past. I hope that they bring it into the mainstream and give it the visibility and support it needs to be a huge success. This will also create significant ($$$) consulting opportunities. They need to grow this area and take advantage of this. If you didn't notice, Oracle is approaching 50% of revenues from consulting (over $1.1 billion last quarter). This is a small part of Informix's business today with huge upside. The DataBlade / rich content business is growing, but is not as far along as DW. Again, Informix has the products and the experience in this area and can reap immediate $$$ from consulting, if they ramp it up, since they are the experts. There are alot of projects in process (many on the web), and I believe that "rich content" databases will start showing significant license revenue growth in about 12 months. The U.S. sales force has been rebuilt over the past year. It takes time (many were from Sun and the HW world)to learn the DB business and develop new prospects. Most companies, outside of current customers, did not want to talk to informix until they cleared the air with the restatement late last year. Based on this and the typical sales cycle, I would expect that license and consulting revenues will grow gradually Q2 and Q3 and begin to really accelerate in Q4, 1998 and be strong in 1999 and going forward. This assumes reasonable, not exclusive, focusing on the items I mentioned above. Bottom line: I believe Informix still has a great opportunity because of their technology, experience in DW and rich content, and strength in major markets like Retail. Once the class action law suit is settled, there could even be an acquisition play because of the technology, vertical market strengths, and low market cap. IMHO the stock should double by year-end 1998 and continue upwards in 1999.