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Technology Stocks : LHSP: Lernout En Hauspie -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Bob who wrote (1289)	7/8/1998 10:38:00 AM
From: D. Peter Vanderlee	Read Replies (1) \| Respond to of 2467

Concerning BCB, this recent article from Investor's Digest in Canada may help explain who we are, what we do, and who our competition is, all from a third party perspective: Issue 13/98 INVESTOR'S DIGEST OF CANADA July 3, 1998 Updates: BCB Holdings By: Phil Speller With this bull market stumbling on tired legs, we can't help but believe we're on the right track stressing inexpensive small-cap stocks at the expense of the over-priced big companies that up to now have led the parade. We sense the tide has turned, but major funds and investment dealers still have a vested interest in large cap stocks, so these companies will continue to be get more attention than they deserve. Even so, one earlier recommendation has reached the point where timing at last appears to be on our side: BCB Holdings (BIV-ASE, $0.23, 905-948-8266), an emerging leader in voice technology. I recommended BCB here 15 months ago at $0.25. It subsequently doubled, then corporate developments were slowed by the lack of working capital and the stock gave back its gains. The company raised $1.1 million through a rights offering at $0.15 last November, a move that showed the continuing difficulty that even legitimate micro-caps have in getting financing. More private financing, including the recent $510,000 12 percent convertible bond due May 31, 2000, plus warrants have increased share capitalization from 26.3 million to 38.1 million shares. Another 14.5 million shares are reserved for possible issue at prices that average well above the current market, as a result of which no effective dilution will occur. Since its incorporation in 1992, BCB has focused on developing open-architecture, personal computer-based digital recording and voice file management systems that add significant value to existing PCs and PC-based recording systems. Dictaphone is the industry leader with annual sales of roughly US$340 million. Early on the BCB development team resolved one of the major obstacles to PC-based recording systems: the difficulty of moving voice files, which tend to be huge relative to text, from workstation through local area and wide networks. Its major, patented product line, PC Dart, breaks down voice data into eight-kilobyte "packets" which can be "streamed" to designated workstations throughout any computer network based on virtually any operating system (Windows NT, Novell, Lantastic, and so on). At the same time, this streaming does not interfere with other data moving through the system. While BCB has had to finance in a difficult environment, the new funds have allowed it to refine its products to the point where they have finally attracted broad industry attention. BCB was alert early to the advantages of incorporating TrueSpeech into its product line so that any PC with a standard sound card running under Windows would have the ability to play TrueSpeech files. Voice files can be compressed "on the fly" thanks to the company's application of the TrueSpeech compression algorithm, which dramatically reduces file size by a factor of four to 20 times, relative to most of Dictaphones's systems . BCB officials have had discussion with leading industry players regarding technical, marketing and/or financial associations. Indications are that one of these may shortly be brought to a satisfactory conclusion, a development that could see BCB emerging with a long-term, "company maker" arrangement that could assure growth in the years ahead. Even in the unlikely event that a major deal is not consummated and despite working capital constraints, demand for the company's products should see revenue growth of more than 150 per cent to 4.5 million in the current fiscal year (ending Sept 30), possibly burgeoning to more than $20 million in fiscal 1999. The company's Granville division has shared the working capital problem and has had to farm out part of its big insurance company and broker intranet project. But its applications and communication server has major opportunities in other areas. These could improve 1999 results. About 7.5 million has been invested to date in BCB, while its market capitalization (shares times share prices), including convertibles and nominal debt, is about $10 million. The stock is trading at roughly 2.5 times sales per share. That's low compared to the five to 10 times sales or more that many high tech NASDAQ stacks trade at . With the prospect of a major industry association now close at hand, the stock seems more attractive than most blue chips, many of which are vulnerable in the current market environment.