To: wmj who wrote (756 ) 6/18/1998 6:19:00 PM From: Robert Knight Read Replies (1) | Respond to of 1084
Here is my summary of the telephone conversation I had today with DIXS CEO Eric Marchant. For any of you who are nervous about your investment in DIXS, I hope this post alleviates some of your fears. I would also suggest that you pick up the telephone and try to talk to the man yourself at (801) 426-4600. First of all, I questioned him about todays statement in his letter to the shareholders about 98 revenues being only $750,000. He answered that it was the Company's first public statement of revenue and that he wanted to be extremely conservative. I asked him how he expected to build upon that number and he pointed out a number of things. He stated that the 4 network affiliates that are now clients have expressed an interest in sharing revenue from the TopJobs website and Job Centers. The Company has worked out an arrangement where the affiliate can sell banner advertising to the site and receive a 50/50 split of revenue. If DIXS sells the space, it would be 75/25. He said that the Company will use these 4 network affiliates as a catalyst to enlist others. I asked him if DIXS was close to any new ones signing on. He answered 3 more by the end of JUNE!! Dallas, Houston, & Indianapolis were potential names. He said DIXS is concentrating on this segment of the business because it has the biggest market approaching $100 million. The more stations they add the more will join in. Another big revenue source will be DIXS the "Directory of Recruiting Employers" which was mentioned in todays release......>>>>>> DiSX sells this contact information to professional recruiters and executive search firms as soon as the 'help wanted' database is developed in a given area. These recruiters and search firms use the database in their own marketing and sales processes when calling on employers. Sales of the 'Directory of Recruiting Employers' enable DiSX to create database products at a profit and without waiting for joint venture partnerships to be established. "'Directory' sales precede and lay the foundation for the eventual rollout of the TOPjobs USA database products in any given market. Also, 'Directory' lls will not be limited to an established TOPjobs USA market, but can be effected nationwide. As nearly as DiSX management can determine, there is no competing database to the 'Directory' in the recruiting marketplace at this time. Access to the 'Directory of Recruiting Employers' can be achieved through www.employersusa.com.<<<<<<< Marchant stated that there are 6200 search firms in the US. Revenue from this would amount to between $500-$800 per week, per search firm. This part of the business will start kicking in in July, and being that they are the only database of its kind, he expects success for the Directory. Other points, DIXS is ramping up to be a full reporting company. He expects that to be complete by mid-July. Announcements forthcoming on the new affiliates and the completion of the audit. He feels the stock is undervalued based on what they have going and their potential. $1.00 stock on the TopJobs site alone. $2.00+ 60-90 days when other facets of the business start kicking in. He said that DIXS is in a position to make serious inroads into this sizable marketplace and that he would utilize the Company's large database and position to continue to enlist new clients and new revenue. He said that DIXS is the only Employment "Information" Company on the Internet today. With $10 billion spent by Employers last year alone, he believe DIXS is postioned nicely as Employers utilize electronic media. Thats about it. I left rather impressed. DIXS future appears to be very bright. Give him a call and see what you think. This report is not a solicitation to buy the stock, the writers opinions only (had to mention that) Good luck to us all with our investment in DIXS..... Robert