To: Mighty_Mezz who wrote (11174 ) 2/12/1999 9:06:00 AM From: richard p. martino Read Replies (1) | Respond to of 15094
***Interesting NEON Article*** Enterprise Application Integrator Growing 100% Per Year (NEON) Wednesday, February 10, 1999 Analysts predict the market for enterprise application integration (EAI) products will grow 45% annually and reach $400 million by 2001. With EAI products, large organizations can preserve existing investments in older computer systems while incorporating new technologies like client/server, Internet/intranet and packaged applications. Several trends are driving the rapid growth in this sector, including proliferating business applications in large organizations, and ongoing issues when adding new applications and platforms to older systems. Growth stock guru Jim Collins recommends New Era of Networks (NEON), the leading EAI vendor. NEON now counts as customers such industry heavyweights as Merrill Lynch, Chase Manhattan Bank, Credit Suisse, GTE, Aetna, Ernst & Young and AIG Insurance. He also cites reseller and joint marketing relationships with the likes of IBM, KPMG, Coopers & Lybrand, Sun Microsystems, Hewlett-Packard, Oracle, Microsoft and Compaq. NEON is already the largest firm in its market, and it recently raised more than $150 million through an equity offering to acquire some of its competitors. Even without more purchases, Collins estimates NEON is now expanding at 100% yearly via internal growth. Financial results bear this out. Q4 98 revenues and income (EPS) came in at $27.3 million and $4.2 million ($0.15/share) respectively, up 230% from last year. "NEON is well positioned to benefit from growth in this rapidly growing industry due to its extensive base of blue chip customers," Collins says. He recommends positions in NEON in all of his growth portfolios. For more on Jim Collins' recommendation see "Analyst's Review," February 1999, OTC Insight. Jim Collins focuses on the inefficiently priced OTC market using analytical techniques to select stocks and create portfolios.