HD couldn't get logged in but here is his response on his visit.


Promised this report for today but can't get logged in. Been awaiting a new
password for over 3 hours. Would you post this for me?

My visit went very well except for riding up and back through the rain, funny
how the rain quit just before reaching Chicago and dumped on me hard right after getting back in Indiana!

Anyway, I thoroughly enjoyed my time there with Geoff and met everybody in the office that day. Nigel I think was the only one out that day. No visitors were coming in that day so I think I saw everybody on a “normal” work day.

I talked with Geoff for over two hours. At the end I asked If he would answer
questions from those of our STCA forum. He agreed, but with the understanding we would not go near anything which could anyway be considered “inside”
information. These replies are not necessarily word for word remark quotes,
unless they are enclosed in ””. Just a summary of what I could quickly scribble down of his replies.


Q: Any updates on new business?
A: All progressing as expected, no one’s turned their backs. Meeting all
demo requirements. “And the list goes on” quote.

Q: Would like to hear more on how our SW/IP stands up against the competition.
A: “We continue to be a market leader and facilitate early adoption.” There is none. Our customers can’t find any and there are huge entrance barriers. “Peter and Nigel are tops in the industry.” “One of the big guys realize this and we get gobbled up at a great price.”

Q: Have you paid the past due $420,000 payroll tax liability to IRS mentioned in the form 10-K?
A: Not totally, paying down in payments as the request for payments with penalty and interest are received from the IRS. Whatever amount on the RFP. (Just recently, bill still on his desk, made a +$60k payment.)

Q: How’s the core business doing?
A: “Great!” Slow but improving. Backlog is rising.

Q: What kind of traction are we gaining on the core business with the HDTV
rollout.
A: Not seeing as much as anticipated. Hard times for the small owners , especially newspaper owners of small stations. The delay in digital conversion by the gov’t added with the economy downturn hurt last year. We expect more to be coming back now. The $10k to $50k type deals.

Q: What is the breakdown of revenue across our products? Is it mostly Axcess?

A: The Lion’s share. Revenue is around % 90 from software, %10 hardware.

Q: How much is Accurate?

A: Accurate is special for Nielson’s. typically a $10k sale.

Q: Does one usually lead toto the other?

A: “Both ways, really.”

Q: What is the likelihood that one of these other current customers steps up and does as much business as QUALCOM in the near future?
A: “High!”


My observations:
Office:

3rd floor, building front, overlooking good size pond with fountian and
landscaping. Very serene. Clean, open, high utility, Spartan, big windows, room to grow, a working office, with tech areas, rooms, nice conference round table for visitor presentations. Great digs for engineers in my own personal engineering opinion. I and the guys I have worked with would really like it and could do really good work there.


Employees:

No one "green" (inexperienced) looking. Professional, experienced, intense and
motivated looking and about their work. Self directed, enabled. Everyone calmly, quietly about their business. Male dominated but diverse. Admin asst Annie: Perfectly professional, neat and courteous and not fake friendly. Young but not too young. Top to bottom, me thinks a carefully selected put together team. Geoff promotes "family" and it shows.


Geoff's office:
Simple, spartan, but good quality functional furniture, not at all or in any form CEO looking. Neat desk, organized but seems all things important close at hand. (an organized, prioritized mind)


Geoff:
NO pretentions. Talks with you and not above you, focused on you, no
distractions, no hurry to be about something else. We talked in his office over
2 hours. Comfortable with who he is. Does not promote himself (or the company) to you. Openly shares himself. His personal history, experiences.. Why he is where he is. Where our potential customers have to be heading and why some are leading (QUALCOM) and others still marking time. Enjoyable conversation. The time passed quickly.

You get the feeling though, he easily can and has, run with the "big dogs" in
"their" backyard and personally knows a bunch of the pack. And that's comforting! He even walked out with me when I was leaving to check out my bike and asked to let him know when I got home safely. He''ll do!!!


Peter:
Just briefly introduced too. Has the look ...Genious at work. Let him work!

Software:
So very well done! NO doubt many, many, man ye ars, of inspirition, blood sweat and tears given in it's making and refinement!!!

Elegant simplicity, logical and encompasing from the high level through a "drill down" to the lowest. Truely and thoroughly impressed! And I do have the
engineering background and experience to say this.

What I really liked: easily tailorable for the "working man" engineering
customer to incorporate and accept because he can retain his comfort
zone familiarity with his facilities by keeping his pre-established naming
conventions, preferences, personality, company conventions.


Hardware: (black boxes) Communication interfaces
Ok stuff, looked Quality. Didn't get into specifics with any of the engineers. Hardware isn't the profit maker. Software is.

Final comments:
The last 10 years - "Waiting for the Market to emerge and come to US." - It
could finally be happening soon.

"Establishing the franchise" - Key phrase from Geoff And means:
A major cellular contract which will start of the exponential growth
curve because of others deeming us then lowered risk, have gained market
acceptance, and jump on board.


HD