Description

MOBI makes software for document archival/retrieval applications. basically, a customer who has thousands of documents and needs them digitized and indexed so that their employees can access them would use MOBI products. Customers include Banc of America and AIG. This is a tough area of software to be in, and MOBI is basically a busted Goldman IPO. The revenues decreased due to large firm cutbacks of software spending due to Y2K and also some softening of ERP spending that shifted to web development. the company has 37.5M in cash and no debt with market cap of 67.5M, so its somewhat cheap based on revenue to market cap 63M/30M (net cash adjustment). Mitch Gross (CEO) owns 31% of company and Joe Albracht (co-founder) owns 22.5% of shares outstanding (so very closely held). They also started a business called click-n-done (80% owned MOBI, 20% owned by employees of clickndone) which focuses on EBPP electronic Bill Presentment and Payment which makes sense on the surface. this allows individuals to pay their bill on line. this differs from the gorilla in the group (Checkfree tic: CKFR), by not charging individuals $8/month to do this. It is a free service, and they intend to get revenues by charging the issuers of bills (may or may not work, but i'm not sure anyone will pay $8 for the privilege of paying their bills.) Other competitors include Statusfactory.com and PayTrust (recently withdrew S1).

Catalyst

Basically two catalyst, the pipeline has improved and some ERP spending has returned. Spending has been scaled back on clickndone so expenses should get better by $2M. if the market recovers and IPO market is more favorable, clickndone is an IPO candidate which is probably assigned zero value.