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As to Omega's intent to support any standalone product note the following
report from Comtex. [You can find this report on BigCharts, just type in
the symbol OMGA and look down the news headlines.] According to statements
from management Omega plans to terminate marketing Ts2k, Option Station,
Radar Screen, Super Charts and become a data vendor (via acquisition of WOW)
and an online broker (via merger with OnlineTrading.com) and focus on
Tradestation.com which will provide analysis tools for their real time data
feed and direct access to the online brokerage module:
Omega Research Signs-Up Nearly 6,000 Paying Online Subscribers in First Ten
Weeks, Doubling Initial Estimate of 3,000 Accounts First Quarter Results In
Line With Prior Expectations Preliminary Survey Results Show That 67.7% of
WindowOnWallStreet.com Subscriber Base Trades More Than 25 Times a Month
THURSDAY, APRIL 20, 2000 10:23 AM
- PRNewswire
MIAMI, Apr 20, 2000 /PRNewswire via COMTEX/ -- Omega Research, Inc.
(Nasdaq:OMGA), the leading provider of branded real-time trading tools for
the active trader, today reported results for the first quarter ended March
31, 2000, and announced that subscriptions to WindowOnWallStreet.com,
launched in January of this year, had reached nearly 6,000 in its first 10
weeks of service, nearly double its previously announced target of 3,000 new
accounts. WindowOnWallStreet.com, the first in a series of the company's
planned online subscription services for active traders, offers
award-winning trading tools and streaming real-time market information for
$79.95 per month. The rapid early acceptance of the service by paying
subscribers provides initial objective validation of the company's strategy.
As anticipated, revenues for the quarter were impacted by the company's
ongoing transition from the sale of client software products, for which
revenue is recognized at the time of sale, to its new online business model
based on monthly subscription revenues. For the quarter ended March 31,
2000, revenues were $8.4 million, compared to $10.4 million for the first
quarter a year ago, and $9.3 million for the fourth quarter of 1999. Prior
period results have been restated to reflect the October 1999
pooling-of-interests acquisition of Window On WallStreet Inc.
The company reported a net loss for the first quarter ended March 31, 2000
of $3.0 million, or 12 cents per share, versus net income of $650,000, or 2
cents per share, for the same period a year ago. The net loss for the fourth
quarter of 1999 was $1.8 million, or 7 cents per share. In November 1999 and
again in February 2000, the company disclosed that it expected losses to
increase temporarily as it accelerated its transition from the sale of
client software products to subscription-based services. Omega Research
continues to anticipate losses over the next several quarters as the company
continues its transition to its new business model.
"The timetable for our strategy to become the leading online broker for the
active trader, including our merger with OnlineTrading.com (Nasdaq:LINE),
remains on schedule," said Bill Cruz, co-chairman and co-chief executive
officer of Omega Research. "The merger makes our success with
WindowOnWallStreet.com even more exciting because we are building a
potential client base of active traders for OnlineTrading.com's high-speed,
open access brokerage services.
"A preliminary survey conducted by the company of 327 WindowOnWallStreet.com
subscribers shows that approximately 67.7% of all subscribers trade 25 or
more times per month, 30.3% of all subscribers trade 50 or more times per
month, and 11.8% of all subscribers trade more than 100 times per month.
These early results from subscribers who answered that question confirm our
belief that active traders are hungry for powerful real- time trading tools
like WindowOnWallStreet.com. Later this year, after we complete the merger,
we will begin to market OnlineTrading.com's services aggressively both to
these subscribers and to our over 40,000 TradeStation 2000i and TradeStation
4.0 customers."
The company's strategy is intended to transform Omega Research from a
software company to the first online broker that offers the next generation
trading platform for the active trader. The company's 1999 acquisition of
Window On WallStreet, with its sophisticated streaming real-time data
services, was a major step in that direction. The launch and initial success
of WindowOnWallStreet.com has been a decisive second step in the journey
toward that goal. The company continues to expect to launch
TradeStation.com, the browser-based version of its powerful, award-winning
trading strategy tool, TradeStation, later this year. Once TradeStation.com
has been seamlessly integrated with OnlineTrading.com's open access online
brokerage services, the company believes it will have the Internet's first
institutional-level trading platform dedicated to the active trader. The
company plans to discontinue all marketing of its client software products
next month in preparation for the anticipated launch of TradeStation.com.
Indicating further progress toward its merger with OnlineTrading.com, the
company noted that this past Monday, April 17, it filed its Form S-4
registration statement with the Securities and Exchange Commission. Omega
Research continues to expect the transaction to close in June, barring any
unforeseen developments.
-----Original Message-----
From: M. Simms [mailto:prosys@xxxxxxxxxxxxxxxx]
Sent: Friday, May 19, 2000 8:12 AM
To: Kent Rollins; OmegaList
Subject: RE: Quarterly Report (SEC form 10-Q)
Further background information should include:
"Omega embarked on a very expensive and aggressive advertising campaign to
tout their new Prosuite 2000 line of products spending millions of dollars
in the process. Their marketing department was unaware of the technical
problems with the product and due to the dwindling stock price, all of their
top developers "jumped ship" at a time when they were needed the most...to
clean-up the aftermath of a very complex application rewrite. As a result,
with a terribly buggy product the company has lost acceptance as a viable
player in the trading systems arena and because the conversion rate from the
older 4.0 version of the product was abysmal, marketshare continues to
decline. Company management was unavailable for comment since the phones on
their respective yachts were disconnected and the gates to their mansions
were kept under armed-guard....in fear of reprisal by violent daytrader
types who had lost millions trying to get their software to work"
Can you say "poor management" ??
> -----Original Message-----
> From: Kent Rollins [mailto:kentr@xxxxxxxxxxxxxx]
> Sent: Thursday, May 18, 2000 8:29 PM
> To: OmegaList
> Subject: Re: Quarterly Report (SEC form 10-Q)
>
>
> In case you didn't bother to read all of Mark's post of the Omega
> 10-Q, here
> is the paragraph I found most interesting. It looks like all those people
> who think Omega will be discontinuing support of TS2K may be
> right, but for
> different reasons.
>
> Kent
>
>
> LIQUIDITY AND CAPITAL RESOURCES
> The Company currently anticipates that its available cash
> resources and cash
> flows from operations will be sufficient to meet its presently anticipated
> working capital and capital expenditure requirements for approximately the
> next 12 months. However, the Company is experiencing a period of
> net losses
> which is expected to continue at least through the year 2000. Further, as
> the Company transitions to its new business model, it may need to raise
> additional funds in order to execute that transition, support more rapid
> expansion, develop new or enhanced services and products, respond to
> competitive pressures, to acquire complementary businesses or technologies
> and/or take advantage of unanticipated opportunities. The Company has also
> recently substantially increased its rental obligations under
> real property,
> facilities and equipment leases. The Company's future liquidity
> and capital
> requirements will depend upon numerous factors, including the
> period of time
> it takes the Company to execute its transition to it's new business model,
> and customer acceptance thereof, costs and timing of expansion of research
> and development and marketing efforts and the success of such efforts, the
> success of the Company's existing and new product and service
> offerings, and
> competing technological and market developments. The Company's
> forecast of
> the period of time through which its financial resources will be
> adequate to
> support its operations involves risks and uncertainties, and
> actual results
> could vary. The factors described earlier in this paragraph, as well as
> other factors, will impact the Company's future capital
> requirements and the
> adequacy of its available funds. If additional funds are raised
> through the
> issuance of equity securities, the percentage ownership of the
> shareholders
> of the Company will be reduced, shareholders may experience additional
> dilution in net book value per share or such equity securities may have
> rights, preferences or privileges senior to those of the holders of the
> Company's common stock.
>
> There can be no assurance that additional financing (debt or equity), if
> required, will be available when needed on terms favorable to the Company,
> if at all. If adequate funds are not available on acceptable terms, the
> Company may be unable to complete effectively its transition to its new
> business model, develop or enhance its services and products,
> take advantage
> of future opportunities or respond to competitive pressures, any of which
> could have a material adverse effect on the Company's business, financial
> condition, results of operations and prospects.
>
>
>
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