TIBX mid q CC 3/7/01
- As many customer reported, we too saw customers delay purchase
- 80-84M double q1 2000 result
- 75% license rev at 60M up 100% y2y
- operating results break even
- we did not miss target due to competive pressure but market pressure
- current economy putting pressure on companies
- leader in our space and provide solution that improve their business
- Q&A
- GS – good position to weather storm?
- A: Our customers can weather storm, INTC, A, ENE, DT, customer have sig assets and need to keep spending, we are looking 80M quarter and stronger than competitors, we have global presence and full solution. 500M+ in the bank and can weather this and break even, We saw a variety of deals pushed out. Customers saying we want to wait until last minute to spend. Across the bord cut in energy and others.
- Blance sheet metrics?
- A: 100M collected so DSO is mid 80’s, reduced it nmicely during quarter, cash 550M, deferred rev will be typical
- MS – B2B vs. back office?
- A: B2b getting delayed, pushing out until absolutley necessary
- TW – Pipeline?
- A: Wait until March 22 for full result. The quality of the pipeline is good, been delayed. Repeat licenses from existing customer base.
- Seasonality?
- A: It did enter into it.
- Deals cancelled?
- A: Not seeing that, Just waiting until absolutely necessary.
- Competitive landscape?
- A: Not change materially, See Beyond, Accenture, Webmethods, Vitria, IBM,
- Internationally?
- A: Seeing some delays in Europe, not as much in US, Asia is not much business.
- TW – Vertical changes?
- A: more detail onMarch 22. We tried to develop new vertical, energy was strong now seeing delays.
- Less comprehensive deal?
- A: Customers want to buy from one company vs. eight companies and saying need to buy bare minimum now.
- JL – deal size?
- A: Median deal size may have gone up a little. Fewer large deals.
- Portal business?
- A: did very well, many millions we did that we had not done before. Think our CSCO-YHOO will dominate corporate desktops solution
- How many missed deals?
- A: Enough to miss our quarter. Lost quite a few in the multi-million category.
- Where in cycle did deferral occur?
- We had won the deal and got stop through upper management approval.
- What application vendors feeling slowdown?
- A: People have these systems and they don’t integrate. Most want to integrate what they have now.
- SSB – Which area saw acceleration? Define deal?
- A: Portal, active data base were strong. Deferral were won, backlog was deal in pipeline. Deal won have procurement process. Procurement negoition saw deal delayed. We won the deal, agree to the pricing, and needed to get contract. Some cases where customer wanted changes. Some we got the technical win and CIO moves it through. Some companies procurement process is very lengthy.
- When see improvement? Which category will move first? Larry Ellison said it will happen on the CC.
- A: demand is strong, more detail March 22. People will spend on core integration area. Strong demand for portal and active database. As for B2b, waiting to see more partners in b2b space so can trade in b2b.
- INGB – flat revs?
- A; More detail guidance march 22.
- Breaking even, op interest,
- A: Operating excludes normal charges, about half revs from previous customers.
- GKM – b2b weak? EAI strong run counters to others like BEAS?
- A: We had strong q4, BEAS is application development platform and people continue to develop application. People trying postpone investment until they ready to be cripple unless they have it. Other have yet to report Feb #s
- Market share?
- A: we are taking market share across the board.
- ED – b2b pushout for time frame to restart?
- A: Hard to put metric, fell 3-6 months. Need enough people out there to do b2b to do transactions.
- 2002 budgets reduce?
- A: budget not going up as fast. Companies trying to make existing networks work.
Uneven call. I like TIBX in 1999 but scalped it and missed the huge run. 550M in cash is the main point. At $10 a share the bottom should hold for a couple weeks.
Jack
