thoughts/ideas/questions yes, (answers, too) but not, I hope, newspaper clippings, speculations, bad vibes and homemade future predictions.
Tor

I only wanted to forward the article. My prefaced comment was unnecessary now that I've heard the conference call. The Journal/Sentinal makes it look like it's going to happen, yet that's not what I got from the audio at all. Seemed to me that Sonic is enthusiastic about keeping it.

Pete

I listened to the V-Call and my thought was that they would sell but they hadn't received what they considered to be a fair offer for all or part of the desktop application software. What I found interesting was when the CEO said things might have changed since the release and early success of Vegas 4.0--ie. maybe someone will offer more---Just a guess. By the way, for those of you who have a problem with "speculation" why not just ignore these posts---I have a background in finance and find the whole Sonic Foundry situation to be fascinating---I think others do too!

Notice this?

"The sale of its media services division - which reformats film and video for the entertainment industry - is expected to close in March, said Rimas Buinevicius, chairman and chief executive officer.

The core of the media services division was created with two acquisitions in 2000 that were then valued at about $90 million. The division had 2002 sales of about $9.4 million, which accounted for 36% of Sonic's total sales in that fiscal year."

What's wrong with this picture? You have something you value at $90 million and sell it for 9.4 million?

This Buinevicius character sure sounds like HE is part of the problem and not the solution. I notice his picture is no longer featured in the last several SoFo catalogs.

The real question is how does a chairman of company that recently had a stock price over $100 a share and now is in danger of being delisted because that stock is now traded at less than a dollar, survive?

"What's wrong with this picture? You have something you value at $90 million and sell it for 9.4 million?"

What's wrong with the picture is they didn't sell it for 9.4 million, it generated sales of 9.4 million for SoFo in 2002. The selling price wasn't disclosed I don't think.
Also don't forget, in 2000 everything in the tech industry was riding high, so spending 90 million must have seemed like a good investment at the time. I also think he's still there because this stock market "thing" is hitting everyone in the tech sector. So someone somewhere thinks he must be doing something right, no?

M

No. SoFo isn't focused. Its all over the map trying to be all things to all people. Its too small to even attempt half the areas it attempted to break into. They should have stayed with what did do best, retail audio and video software, their roots.

Now they jeopardize their core chasing after a dream. In short that describes POOR management. Their finanical statements are a how-to on how to wreck a company. Its hard to believe that management seems so inept while the software developers are so talented.

By this time SoFo could have been and should have been a company with sales of at least 50 million. Last year sales were under 10 million. Strickly small potatoes. One reason third-party developers have basically ignored them to date.

In my view they also made a big blunder not going after the retail channel. It makes no sense to develop software wanted by consumers and not try to get your products in front of the public in stores like BestBuy, CompuUSA, MicroCenter, etc..

While Vegas is aimed at 'professionals' this forum clearly shows that hobbyists and semi-pros make up a large portion of the people using the software. Not more aggressively going after that eagar portion of the market to have more powerful video/audio editing software at a reasonable price is shortsighted.

BillyBoy, listen to the conference call on vcall.com. I think SoFo is now going to be addressing what you're talking about (lack of focus). At least I hope so.

M

Just listened to it. Clearly Sofo still has no direction. They are still hedging their bets, and still chasing after the pie in the sky of 'new opportunties' not learning their lesson which saw their stock plumpet from over a $100 a share to less than a dollar a share. While for sure all tech companies are in bad times, such a plunge in stock price due to poor financials is the cause here.

Not realizing they have a winner in Vegas is a potentially bigger mistake. Its like some major league baseball team trading the only 20+ game pitcher they have hoping that their farm system MAY develop a diamond in the rough. A gamble to perhaps throw away next season, hoping the season two or three years down the road may be better.

In my view, a RECKLESS mistake. You don't throw away your best asset hoping something in development may pan out later. In Sofo's case there may not be a next year.

What I heard I didn't like. On one hand the are pleased with the inital success of Vegas, then shortly after the CEO hints he would sell it if someone made them an good enough offer. Why? To again go chase another dream! That tells me to CEO didn't learn a damn thing in recent happenings.

He Further added some companies are interested in just some products other looking at the whole 'desktop' line as the SoFo CEO called the division that Vegas falls into.