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

To: Robert Graham who wrote (11093)	6/19/1998 6:07:00 PM
From: Mark Finger	Read Replies (2) \| Respond to of 14631

I found this when looking in the Edgar archives. It is from the revised 10-Q (filed June 9): sec.gov The interesting data is for the requirements for meeting the A/R credit requirements. Note that they did not meet the "new" sales with the revision, and that it was revised downward by the revision amount. Interesting!!!!!!!!!! On page 24---- ------------------- The availability of the Credit Facility is also subject to the Company's compliance with certain covenants, including financial covenants requiring the Company to (a) maintain a ratio of 1.25 to 1.00 in respect of the sum of cash and accounts receivable to the difference of current liabilities less deferred and unearned revenues, (b) maintain quarterly revenues which do not include any restated revenue resulting from the Company's November 1997 restatement of its financial statements of $150.0 million through June 1998 and $160.0 million thereafter, (c) maintain quarterly operating loss of no more than $10.0 million through the quarter ending March 31, 1998 and a quarterly operating profit of at least $10 million for the quarter ending June 30, 1998 and a quarterly operating profit of at least $15 million thereafter, (d) maintain, for the quarter ending June 30, 1998 and each quarter thereafter, a positive quarterly cash flow consisting of operating income which does not include any restated revenue resulting from the Company's November 1997 restatement of its financial statements, capitalized software costs, capital expenditures or cash outlays in respect of accrued expenses arising from restructuring charges (but which income figure does take into account depreciation and amortization expenses), (e) maintain an interest coverage ratio of 1.25 to 1.00 in respect of quarterly operating cash flow to interest expense plus scheduled amortization of debt, (f) refrain from making additional investments in fixed or capital assets, in any fiscal year, in excess of $15.0 million, plus any carry forward amount, which carry forward amount cannot exceed $5.0 million and (g) refrain from entering into any merger, consolidation, reorganization or other transaction resulting in a fundamental change. At March 31, 1998, the Company was in compliance with all financial covenants under the Credit Facility except for the attainment of Minimum Quarterly Revenue (as defined in the Credit Facility) for the fiscal quarter ended March 31, 1998. However, the Company has secured a waiver from BankBoston, N.A., the Canadian Imperial Bank of Commerce and each of the lenders under the Credit Facility regarding this covenant as it relates to the Company's financial results for the fiscal quarter ended March 31, 1998. In addition, in connection with such waiver, the Credit Facility was amended to reduce the Minimum Quarterly Revenue from $150.0 million to $144.0 million through June 1998 and from $160.0 million to $154.0 million thereafter. ------------------- Note especially the minimum profit amounts of $10M for Q2 and $15M after that. That amounts to about $.06+ and $.09 respectively per share before taxes and preferred stock charges. Note also the major restrictions on capital investment and mergers and acquisitions, or being bought (at least that is my interpretation). Some of these numbers are fairly aggressive.