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Technology Stocks : BACKDOOR, an IPO> IDTC,BRKT,BNYN,KLOC,NAVR -- Ignore unavailable to you. Want to Upgrade?

To: C. McD who wrote (309)	2/9/1999 7:33:00 PM
From: GBT	Respond to of 954

BNYN News about possible Switchboard IPO soon. Technology News Tue, 09 Feb 1999, 2:12pm EST Banyan Systems Sees Big Value in Internet Unit: Bloomberg Forum Banyan Systems Sees Big Value in Internet Unit: Bloomberg Forum Westboro, Massachusetts, Feb. 9 (Bloomberg) -- Banyan Systems Inc. has been in discussions with other companies about a strategic partnership with Switchboard, its Internet directory unit, Chief Executive William Ferry said. The provider of computer networking software and services also could sell shares of Switchboard, which provides residential and phone directories, in an initial public offering, Ferry told the Bloomberg Forum. ''It's logical to expect we would want to monetize our investment in Switchboard,'' Ferry said. A strategic partnership might include an equity investment in the unit, he said. Banyan's Switchboard unit had $1.8 million in revenue in the fourth quarter, and expects to increase sales by 75 percent to 80 percent in 1999, Ferry said. The company is going to focus on selling local advertising on Switchboard, which gets about 70 percent of its current revenue from national advertisers. Banyan Systems' shares dropped 16 percent on Dec. 10 after the company said its contract to provide yellow pages information to America Online Inc. wasn't renewed. That will free it up to seek other marketing agreements with rivals to America Online, Ferry said. ''A number of AOL competitors were uncomfortable with'' the Switchboard contract, he said. ''Now, the numbers of inquiries about closer partnerships has gone up dramatically in the last four to six weeks.'' Since the announcement of the loss of the AOL contract, Banyan's shares have rebounded 85 percent. Westboro, Massachusetts-based Banyan has two other divisions, one that sells professional services and another that makes software programs such as StreetTalk, which helps people find data on corporate networks. The company's professional services unit should see its revenue increase by 50 percent to 60 percent in 1999, Ferry said. The software unit's sales may not grow, or grow only by a single- digit percentage, he said. The company's coming out with several new programs this year that should boost software sales farther ahead, he said.