NeoMedia Technologies, Inc (NEOM)

[hightechjunkie]

Hey Sean,

Are you sure it wasn't Network 365

http://network365.com/

Valista Corp out of Ireland? I seem to remember that. Anyway, here the link.

Good call today. I think I like Mr. Hoffman. He seems like the type of person who doesn't cater to the "I can't" type of personality. I would venture to guess those folks end up on their rear end in the parking lot. He seemed very upbeat and determined in his tone today. Knowing that one has an additional year of financing gives one the ability to set some short and medium term goals. Simply stated today, their biggest challenge is to become profitable by making money not by borrowing money. This goal can only be realized by adding a dozen high energy sales people "of which they have made room for" to get in cozy with the major telecoms in the minor markets. I am glad to see that he has looked beyond what Neomedia must do after they have sold off the non-essential assets. He made several telling statements today which reinforce my personal belief that the US will be the hardest nut to crack because of the Telecoms and the FCC. Having said that, he contends that the Asian, South American and North America sans the US will be the easiest to penetrate. He also noted that the US would fall into place when the others were penetrated but not until then. The reason for that is the high cost of infrastructure and support in the US market. The Qode software has to be bulletproof before any of the US carriers will touch it and what better way to make it bulletproof than to introduce it and implement it into the lesser markets. "$33.00 dollars per 611 call in resources create a customer service nightmare" were his exact words. Now we know why all of the seemingly myopic test markets are necessary.

Mr. Hoffman also remained upbeat as several callers conveyed their dismay about the share price. He retorted by stating as matter of factly as he could that the only way this would get turned around would be by producing revenues. He knows that the bridge is under attack but he also knows that without revenue the patents are eventually in danger of falling into the hands of the competition. His focus is clear and his mission is concise. Sell NeoMedia solutions to every entity that markets to a limited or focused audience. The market is worldwide and it is huge. Gavitec is an integral piece to the revenue puzzle and it is profitable. It needs to be a lot more profitable. There are already success stories out there so there is no need to sell pie in the sky. The universal reader is another integral piece of the proverbial puzzle so there needs to be seamless integration and a modular turnkey solution that can be implemented in either phases or out right as a single solution. He seems to know that and is very focused on getting the word out there. I think he made it clear that revenue is the only thing that can offset dilution and he aims to eventually make further dilution a non issue. I think that the 4 quarter approach is a more realistic goal than by EOY because things will happen in the next two quarters that make meaningful revenue possible and probable in subsequent quarters. Neomedia has been assured that they are going to have financing going further and they are still discussing the strategic partnership with potential suitors. I personally think that the first Telecom to come on board will be that suitor and they will also be the ones to provide Neomedia with a much needed cash infusion. Of course, they will be offered a discount on tranactions and they will inevitably make a larger ROI than the others.

The nay-sayers have already started posting that the CC was rigged with pumpers that agreed with everything said and purposefully disregarded the company's financial situation. I heard about 12 calls today from folks of all nationalities. Some were the usual suspects and some were quite clear about their disdain for the company. I hardly call that a pumpers CC. Last I looked, the number to call was toll free and all who wanted to could call, listen in and interact. All of those cry baby posters from the other boards had an opportunity to call in today and some chose to abstain. In my opinion they passed up a perfectly good opportunity to call in and convey legitimate concerns to management. Why they would think that the CC was rigged is beyond me. It is clear that there are those out there who want everyone to believe that Neomedia is going to go bankrupt. There are also those who believe that the EFF can keep businesses from doing business with Neomedia by creating the sentiment that the Patents are suspect and are going to be over turned in appeal. Well, the opposite can also come from those posts. One, is that the patents are Neomedia's and the fact that they are being attacked from every direction known to man is an indication, at least to me, that they are coveted. Secondly, the potential businesses out there that want to do business today and not tomorrow aren't going to sit around and "wait" for Neomedia to either go bankrupt or relinquish the patents. Cornell knows that and Mr. Hoffman stated that in the CC today. He said that Cornell was going to wait until Neomedia became profitable. Cornell knows that the market is more profitable than the pieces of paper containing the patents and Cornell is not in the business of running businesses. They are in the business of financing businesses. Much to the chagrin of all of the other PWC players out there, Neomedia currently owns and controls the patents. Until they are overturned or sold, they will continue to own the patents. No amount of braying can change that so those who have been braying the loudest, and you know who you are, you might as well reserve yourself to the fact that until something changes, you are on the outside looking in. Mr. Hoffman is very astute and he already has the ear of the Telecoms and the infrastructure providers. He is a no nonsense guy that does not seem to know how to take no for an answer. Until he proves to be otherwise, he has my support and I will continue to advocate Neomedia technology as the best possible solution for PWC media connectivity.

Finally, if I was a Neomedia employee who was offered stock options as an employment incentive. I would be more interested in making those options worth more than I would be buying cheap shares. For those who already have options, the incentive is to make those options worth more. Simply buying the stock at an inexpensive price is not enough. The only thing accomplished by that would be that we all have a whole lot of cheap shares. What then? Making those shares worth something is the most important issue and I believe that Mr. Hoffman addressed that issue today. The patents are worthless unless they are generating revenue. IMO. GLTA


htj