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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 (1575)	3/10/1999 6:46:00 AM
From: Tom Drolet	Respond to of 4913

Tom: Nice mention on IWM--Infowave(CIC) article. Press this am on CIC: Folks: Today's press (Globe & Mail ) on CIC's Q3 financials. National Post had a piece that I can't find electronically( Revenue Growth angle-reasonably positive). Tom D. Revenue jump boosts Certicom stock Wednesday, March 10, 1999 TYLER HAMILTON Technology Reporter-G&M Certicom Corp.'s stock jumped 5 per cent yesterday even though the company's losses more than doubled. The data security technology company had revenue in the third quarter ended Jan. 31 of $1.7-million, nearly a six-fold increase over the same period last year and up 32 per cent over the previous quarter. Losses, however, grew deeper. The Toronto-based company lost $8.8-million or 81 cents a share in the quarter, compared with $3.4-million or 38 cents for the same period a year earlier. Certicom was expected to lose 74 cents a share, according to a poll of four brokers by First Call Corp. But investors, encouraged by the stronger revenue, pushed the shares up 80 cents to $16.80 on the Toronto Stock Exchange. Philip Deck, chairman and chief executive officer, said about 5 per cent of revenue came from licencing royalties from its encryption products, while the rest came from a combination of servicing the customers that are testing its technology and from upfront licence payments. "The reason our revenue is going up is that we're able to mix in the services, which then drives up the licencing," he said. The idea is that customers will be more likely to use Certicom's technology if they have help putting it into their products, which are typically wireless devices or services for sending data and doing electronic commerce over the Internet. Paul Lechem, an analyst with CIBC Wood Gundy Securities Inc. in Toronto, said Certicom is making inroads but that the path to profitability continues to be long and winding. "I don't think you can call these results poor by any means," said Mr. Lechem. "Slowly, I think things are coming together." Mark Pavan, an analyst with Yorkton Securities Inc. in Toronto, said Certicom's revenue and losses were in line with his expectations. He has an "underperform" on the stock with a 12-month target of $15, which he plans to maintain as he watches the company build its services business. Certicom develops encryption technology to make sure data transmissions are secure. In the third quarter, Certicom signed licencing agreements with BellSouth Wireless Data, a division of Atlanta-based BellSouth Corp., and Newcom Technologies Pty Ltd. of Australia to secure wireless electronic commerce services over mobile devices.

To: Tom Gordon who wrote (1575)	3/10/1999 7:10:00 AM
From: Tom Drolet	Read Replies (1) \| Respond to of 4913

Tom and Frank: I did sit in on about 3/4 of yesterday's conference call. I haven't got the time right now to do a blow by blow in a reporter sense. However, I would point you back to my comments in posts 1562 and 1565 and the replay of the call available on the conference call playback system via 416-626-4100 with access # 1888375 (good for 48 hrs). I do not feel much different than I did after the 1562 and 1565 posts. The royalty per unit copy income for CIC products is not coming as quickly as I thought it would. I do not think the reason is because of CIC performance or their product's failure. Simply put, the role out of e-commerce, wireless OEM products and Smart cards is slower than anticipated. The income from service applications is a necessary additional (proxy) lever now and for the longterm. There were statements about cashflow breakeven after the next 2Q's OR SO. However, the hockey stick is now a longer one. The clink of the per unit royalty cash register is fainter and further out. The P word (PATIENCE) is still in vogue. IMO Tom D.