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Gold/Mining/Energy : Certicom Corporation (TSE:CIC, NASD:CERT) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Gordon who wrote (1542)	3/6/1999 10:36:00 AM
From: Tom Drolet	Read Replies (3) \| Respond to of 4913

Tom: very interesting speculation you have posted. Only part that is not clear to me is " why the Y2K issue would arrest revenue growth till after Jan 1/2000"?. Is it the thought that all the e-commerce guys are waiting till things stumble and then push e-commerce after the turn of the year-- then CIC gets the lion share of on-line authentication/ encryption/verification etc?

To: Tom Gordon who wrote (1542)	3/6/1999 5:08:00 PM
From: Frank Ferrari	Respond to of 4913

$2 million in revenue would show good growth. I think it is critical that CIC keep things going in the right direction if they hope to get any momentum back in the stock price. For anyone new here, I have pasted a dow jones article that was written after last earnings release. According to this CIC has executed as they said they could if revenue is around $2 million. December 8, 1998 Dow Jones Newswires Certicom Looking For 50% Rev Growth Quarter-Over-Quarter By SCOTT ADAMS Dow Jones Newswires TORONTO -- After considerable delay, encryption company Certicom Corp. (T.CIC) believes its revenues are finally set to take off. Earlier Tuesday, Certicom reported revenues of C$1.3 million for the second quarter ended Oct. 31, a 60% improvement over the previous quarter. Phil Deck, Certicom's chairman and chief executive, is hoping for about 50% quarter-over-quarter revenue growth over the next several quarters. "That is certainly in line with our expectation," Deck said. A year or two ago, analysts were expecting revenues in the tens of millions of dollars for the company's current fiscal year, but customers have been slow to use Certicom's elliptic curve cryptography. Even in the last couple of weeks, the company had to guide analysts to expect lower revenues than previously anticipated for the quarter, an event that has become a common occurrence over the past year. Certicom's stock price has collpased as a result, as it's now trading at 8.55, far below its 52-week high of 43.00. However, Deck believes the company's recent switch in strategy is beginning to pay off. Instead of simply licensing elliptic curve technology to customers, Certicom has begun to help its customers install elliptic curve and other security solutions. Two acquisitions have given it a larger customer and product base, as well as a larger body of expert employees to carry out this strategy. "We're not getting as many different customers as we had hoped deploying right now, but they're all responding well to our much broader product offering and service offering," Deck said. "It is more work for us, but it is also more revenue and it gets them (customers) into the market much faster," he added. He said it isn't possible to separate how much revenue is being generated from organic growth and how much is being generated from the acquisitions. The most important revenue-generators at the moment are hand-held computing and messaging devices, Deck said. Last week, 3Com Corp. (COMS) confirmed that it will use Certicom's elliptic curve in its next-generation Palm VII. "We're working with just about every company that is important in that kind of industry," Deck said. Certicom Corp. (T.CIC) chairman and chief executive Philip Deck said the company is also working on investor relations in the Silicon Valley area with the hope of listing on Nasdaq, perhaps in the next six months, depending on how large an institutional following Certicom can muster in California. Deck said cash burn rate shouldn't be a problem for the company even as it continues to lose money. It had an operating loss of C$3.6 million for the quarter, but still had C$31.9 million of cash at the end of the period. It also expects to reduce expenses over the next several quarters. The company used to market itself in every area that elliptic curves can be used, in order to promote acceptance of the new technology, Deck said. Now that it has succeeded in doing this, it has begun to only work on areas it knows it can earn revenues, meaning expenses are coming down, Deck explained. -By Scott Adams; 416-943-7804; scott.adams@dowjones.ca Cheers Frank