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Technology Stocks : NetObjects, Inc. (NETO) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (34)	5/6/1999 3:44:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 278

Briefing.Com sez: 15:30 ET ****** NETOBJECTS INC (NETO): Seven down, and as many as three more to go. We're referring to the seven Internet-related deals that have already hit the market this week, and the three more that could potentially be released tomorrow. Web site development software company, NetObjects, is one of the deals tentatively scheduled to price tonight and begin trading tomorrow. The proposed offer range on the BT Alex Brown managed IPO is $11 to $13... Description: The company is essentially being spun off from IBM. Big Blue currently owns more than 75% of the Redwood City, CA-based company's shares. No surprise that IBM has also been a major customer of NETO, accounting for more than 36% of total revenues in 1998. IBM-related business grew to 45% of total revenues in the first six-months of 1999. Within the prospectus, NETO warns that it expects software license fees from IBM in the remaining quarters of fiscal year 1999 to decline, "perhaps substantially." Financials: For the fiscal year ended September, NETO logged revenue of $15.3 mln, up 102% from the 1997 period. The company's net loss widened to $22.2 mln from $17.8 mln. A pricing at the top end of the $11-$13 range would give NETO a market-cap of $339 million and trailing Price/Sales ratio of 16.5... Competition: Publicly traded competitors include Macromedia (MACR), Adobe Systems (ADBE) and Microsoft (MSFT). These companies sport an average P/S sales ratio of approximately 11.5. NETO is planning to use approximately one-third of the IPO proceeds to repay debt owed to IBM.

To: Mohan Marette who wrote (34)	5/6/1999 5:17:00 PM
From: Ken Whiteside	Read Replies (3) \| Respond to of 278

OK, I've played with fusion for a little over an hour. That's not long but here's my take on the Net Objects product. I got the same feeling I had when I tried OS/2. Like windows but different. If you hit it with a hammer I think it wouldn't break. Everywhere you look more features. An amature could create a site with the wide selection of styles and it would look professional. Front page wizard, forget it, they are hokey. Many built in powerful features that I didn't get working in the little bit of time I spent with it but sound very encouraging. Rollover buttons, this would eliminate the need for java script buttons that light up and do fancy stuff when you cursor over them. Cascading style sheets. Very new and techy. Supposedly works with IE and Netscape. Superior media support, active x, java, the works. My only compaint is that the sample pages didn't have all these cool features loaded up. I like starting with live working examples and stealing or tweaking my stuff into it. No manual needed for that. Bottom line. If the marketing was behind this product with the funds to make it happen, it could give front page a run for the money. Keep in mind IBM affronts microsoft differently. Notes is touted as the best email by many big companies yet it doesn't have the market share like exchange. IBM sometimes just plays with the big boys and does well at it. Net Object is IBM and if they don't totally cut it loose it will succeed in IBM's market! I'M IN ON NETO! The upside is open 40, could be at 80 in six months. It wont price higher than $17 so you don't have to worry about all you profits being eating before you start. If it stumble and goes to even $12 big deal, $500 for the chance to make thousands. I like the chances! Ken . . .