IPO portrait - Hexmac

Aktienzeit- Der kostenlose B�rsenbrief,
Nr. 20/2000 vom 22.09.2000

Whether business newspaper or yellow press - everyone wants to be in the Internet too. This trend is great news for so-called Web-content managers, and one of the first of these is HEXMAC SOFTWARE SYSTEMS AG, that now wants to make headlines among investors.

The company:
Originally conceived as solely an editorial system, HPS now forms a platform that combines editorial content with the ability to buy products. A very positive aspect of this is that HEXMAC is not in direct competition with companies such as PIRONET, GAUSS INTERPRISE or the much larger VIGNETTE from the USA.

Stock exchange listing :
With around 1.3 million shares on offer, of which one million stem from a raise in share capital, HEXMAC is one of the smallest offerings on the Neuer Markt. Nonetheless, the IPO is to initiate ambitious activities. Much of the estimated 19 million euros raised at the offering will be passed on to the sales team. Their goal: the successive marketing of the company abroad (Asia from 2001, USA from 2002). The plan is to raise 21.6 million euros and break even in the space of 2 years with 500 licenses. Until this time, losses of around 10 million euros are expected to amass. The swing is to come in 2003 with an expected EBIT of 3.8 million euros. Michael K�hnl has a very positive attitude towards acquisitions.

Summary :
In Germany alone, four dozen publishing systems struggle for the favor of project developers and editors. The HPS system is a technology leader. Technnology CEO Mr. Pfennig estimates the development lead to be between six and nine months. Due to the modest size of HEXMAC, two scenarios are conceivable: either the 55 employees succeed in anchoring themselves in this niche, or HEXMAC will become a takeover target. More than 40 percent of the shares are held by individual investors and the capitalization represents only a very low hurdle for any competitors endeavoring to force their way to the helm of this company. Speculative investors will buy a few, but be aware of the uncertainty of the forecasts.