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Microcap & Penny Stocks : HeartSoft Incorporated (HTSF) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Walsh who wrote (1266)	3/10/1999 10:52:00 AM
From: Lee Bush	Read Replies (1) \| Respond to of 1781

All: They are taking us down big time today. Moving us back under 2. Lee

To: Bob Walsh who wrote (1266)	3/12/1999 1:49:00 PM
From: Richard L. Williams	Read Replies (1) \| Respond to of 1781

OK, folks...the market, and the market makers, have told us what they think today's release says. Let me throw a little light on some key phrases, and perhaps those holding and those that bought today will have a little more to smile about. >>The decrease in Net Sales is fully attributed to the elimination of revenue from the company's unprofitable Advanced Technologies Division, which was completely phased out during the fourth quarter of fiscal 1997, and a 67% reduction of the one-time revenues derived from international product licensing. << So, HeartSoft got rid of a money losing operation, and that cost money to do..this cost is done with. Also, I read the second line as saying that the costs of setting up a licensing agreement (lawyers!) ate 67% of the revs from the agreement. ONE TIME COSTS--THEY WON'T BE REPEATED. BULLISH! >> Prior to December 31, 1998, the principle focus of the company was on the development of the company's educational software product lines with only minimal focus placed on product sales. During November, 1998, the company completed all software development projects and shifted its focus to the building of its marketing, sales, and distribution forces. The company anticipates that results from these efforts will begin to have a positive affect on the company's revenues during the fourth quarter, ending March 31, 1999, continuing with a much larger, material affect on its revenue growth during the first quarter of fiscal 1999, ending June 30, 1999. << OK...so everything before 12/31/98 was still from the company's R&D period. Only in January did we see the results of the new emphasis on sales, and the numbers (not in this report) are up sharply. BULLISH! >> In the future, the company anticipates the cost of goods sold will remain approximately 10 to 12% of net sales.<< I have been using 15% as the cost of goods in all my projections for HeartSoft, and here it is actually at least 3% below that. BULLISH! >>Operating Expenses decreased slightly for the 9 months ended December 31, 1998, to $571,000 compared to $658,000 for the period ending December 31, 1997. The decrease can be attributed to streamlining of the company's software development group and to cost-saving measures implemented across the board. << Without the savings in OE, the nine months would have shown a LOSS of $78,000. Hmm...with the "in thing" these days being to be a money losing operation (ie., AMZN, EBAY), I suspect HTSF would have broken $5 today if Ben had just posted a loss. Seriously, though, Ben Shell runs a tight ship, and we won't see that change when REAL success sets in. BULLISH! >>For the foreseeable future it is the intention of the company to increase its market share within the school, home, and home-school market with its current product line and to expand or add to its product lines whenever it believes favorable market conditions exist. Recent endorsements by third party reviews of the company's new critical thinking skills product, Thinkology(R), have caused the company to accelerate the growth of its marketing and sales strategy. As a result, the company began to significantly increase staffing of its inside sales group in November, 1998, and continuing into 1999 The company believes that results from this expansion will begin to have a positive impact on revenues during its fourth fiscal quarter and will have a significant impact on revenues during the first quarter of fiscal 1999.<< No need to discuss the company's discussion. Any guesses on how I think it looks? You guessed it...BULLISH! People, all the bad news is behind us now, and all the future can bring is good news! Remember that? Those VAR agreements, the increasing revenues, and the impending agreements to market via the internet? Right! All to come. What the sellers and the MM's gave people today was the BUYING OPPURTUNITY of the year! Cheers! Rick Williams