| An SI Board Since November 1997 |
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Usually when we think of Internet stocks, we think of companies such as YHOO and AOL that are direct Internet plays. This is only the first generation of Internet stocks, the second generation will be application software which uses the Internet as a tool and communication link. A good example is Brock International (BROC) which has been quietly preparing an Internet-concentric Sales Force Automation (SFA) enterprise package called NetGain. The NetGain package takes SFA to the next level beyond today's client/server applications to thin-client access using only browser software on the client machines. NetGain will hit the marketplace in early 1998 and set new standards for enterprise SFA solutions.
BROC was one of the early entries into SFA with a text-based UNIX product. SEBL and others have been more successful in this market recently and both BROC revenues and stock price have languished. But when R. Douglas MacIntyre was brought in as CEO in late 1996 he was interested in much more than just matching the competition's products and returning to profitability. Doug planned to leapfrog the competition with a new product. First he brought expenses under control and improved current products so as to protect the substantial client base and provide cash flow for R&D. Then he gathered a talented management team that shared his vision and began to research new product ideas. Having a positive cash flow, no debt, cash in the bank, and a strong client base provided the launching pad for a the new "leapfrog" product.
During the research phase, BROC discovered NetGain, a new startup from the Georgia Tech business incubator. The product and the NetGain staff fit with Doug's vision and an acquisition deal was made in mid 1997. Since that time BROC has been busy developing NetGain SFA as an enterprise solution. A visit to the BROC offices in Atlanta is now like walking into a high tech startup venture. Excitement is in the air, long hours are routine, everyone has high expectations. Even the casual visitor will pick up that "something big" is underway.
BROC is currently selling in the $4 1/2 range (November, 1997), a very low price/sales ratio that does not yet reflect the potential of NetGain. Substantial gains are possible as the potential of NetGain is recognized, probably well before NetGain begins to expand BROC revenues in mid 1998.
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