In the late 1980 the personal compu...

In the late 1980 the personal computer and work-stations that were being used according to individuals, in increasing numbers, in larger organizations were essentially 'computing islands' serving single users. Hummingbird recognized that these islands would shortly want access to information and programs that was available forward other, often larger, computers in different departments of the organization. Unfortunately, the PC and other computer often had incompatible operating systems (or platforms) which made computer-to-computer communications impossible; as well, they may have been operating below different networking systems. In the late 1980 Hummingbird unraveled its Exceed software to enable computer in different departments, in succession different networks and operating upon different platforms to share information and applications software effortlessly.

By fiscal 1997 the award-winning Exce software was the best-selling 'PC X server software' in the world with an estimated 55% of the market-up from 29% in 1992 Approximately 68% of sales are in the United States, 23% in Europe and the remaining 9% in Canada and the ease of the world. Sales of this performance line account for approximately 80% of the company's returns which are derived principally from large firms as it was as those found in Fortune magazine's Top 1000 companies.

Mr Fr Sorkin, Chairman, President and CEO and single of the company's founders admits approximately 12% of the company's shares; another originator Mr. Alan Barry Litwin, Executive Vice President, Research & evolution owns 9%; and, a peril capital firm, Helix Investments avows 5%. It is estimated that a further 60% of the shares are avowed by institutional investors with the balance of about 10-15% of the 15 million shares outstanding acknowledgeed by individual investors. Shares are traded forward the TSE "HUM" and NASDAQ "HUMCF"

Please Note: In 1997 the company began reporting its financial issues in $US (rather than $C) as it is a practice is not unusual for Canadian companies that generate a majority of their incomes abroad. This situation almost always accrues in currency inconsistencies in the data available to subject of attention a company. As a inference someone studying such a company is required to make certain decisions about which bills and notes; circulating medium to use. Because the meditation of a stock is inherently a 'forward-looking' activity, the decision made here was to close attention the stock's historical performance using $C (and restated $US) while making projections in $US.

PROSPECT FOR hereafter GROWTH IN REVENUES

The starting point for developing prudences about a company's future receipts growth is an understanding of the reasons for its historical shooting Data for the current fiscal year ending September 30 have been estimated.

Historical receipts Growth

Revenues ($C) grew at a amalgamate rate of more than 95% between fiscal 1992 and 1996 (September year-end). During the last sum of two units years to 1997 (estimated), receiptss ($US) grew at more than 45% by means of year. In keeping with interim flows for the first two quarters of fiscal 1997 estimated incomes for fiscal 1997 are casted at $US100 million which portray by actions 35% growth between fiscal 1996 and 1997

Chart 1: During the investigation period Hummingbird has retained all of its earnings. As a eventuate of retentions and the sale of shares in fiscal 1993 (when the company went public) and again in fiscal 1995 the company generally has over $100 million in cash and equivalents and no long-term due Since 1993, the company's efficiency in utilizing assets has fluctuated in the range of about $45-$65 of sales for each $100 of assets.

Historical bourgeoning in the company's revenues has been achieved on selling products to more customers and at increasing the penetration of cropss in a client's organization. Typically, sales of the company's flagship Exce software are generated from selling a site licence to an organization for a specified number of computer to share information via the software. For example, a large client company (eg Boeing, Ford, Texas Instruments, etc) might initially purchase a licence for say 2000 or 3000 "seats." Subsequently the client typically expands the number of seats licensed which generates added receiptss for Hummingbird. For example, a larger client might expiration up licensing many thousands of seats, including one licences for 40,000 or more seats.

Hummingbird has several sales offices in North America with a 75-person sales force to service large firms and a reseller network of national software distributors. In Europe and the Far East, sales are generated principally by means of distributors. A staff of across 50 software technicians provides post-purchase technical support to customers.

The revitalization of the world economy since the early 1990s; the computerization of the work-forces in North America and around the world; the survival of competing platforms for computers; and, Hummingbird's leading-edge technology have all contributed to its unusually high, historical, receipts growth rate.