Dow Jones 10507.97 +59.41 1:10 pm PST, April 12, 2005  NASDAQ 2005.40 +13.28 For info, visit access.smallcapnetwork.com S & P 500 1187.76 +6.55 Change your subscription status here Russell 2000 612.96 +5.79 VOLUME 05: ISSUE 28  Trading Alert: Spescom - (Organizing) Knowledge is Power. There are lots of software companies. Then there's San Diego-based Spescom Software (OTCBB: SPCO). Critical business information isn't of much use if all types of that information aren't organized precisely--and readily accessible. With all the different forms that information can take, streamlining its delivery and interpretation in the most cost-effective manner has become equally critical to the efficiency of governments and the profitability of businesses. Enter Spescom, a smallcap company that has developed what it believes to be the first software suite that encompasses a content and configuration management software system for complex, disparate applications within a number of industries including energy, industry and defense (Homeland Security). Here's the neat--and profitable--part. The fact that cuts Spescom out of the software herd is the ability of its technology to organize structured information such as that found in a standard database or within documents as well as unstructured data; the likes of email, video, images or just about any form the information/data may take. Spescom accomplishes this multi-dimensional view through its proprietary eB software; offering its clients the ability to organize all of these forms of previously disparate information sources on a single platform. Today's announcement of a deal (release below) to provide submarine management services to BAE Systems, one of the world's largest defense contractors, further evidences the quality, viability and, most important the investment potential of Spescom's cutting-edge solutions. We believe that the significant potential afforded by the unique nature of Spescom's products and solutions define the shares as an excellent accumulation candidate for risk-oriented investors who want early exposure to the next generation of content management software.  The company's proprietary software solutions could well revolutionize how governments and businesses secure, access, deliver and disseminate critical information from a myriad of sources. Spescom's share price doubled from December 2004 to January 2005. The subsequent healthy pullback shows good consolidation between 41 and 53 cents. At the current 41-cent level, the risk reward appears excellent in our opinion. A mental stop at the 35-cent level would likely be prudent for risk-oriented traders who choose to accumulate at these levels. The float at just below 15 million shares is quite modest. We would advise watching for the gap and govern your trading accordingly. Why Spescom? Let the CEO tell you... "The explosion in growth of computer-generated data that accompanied the Information Age has long ago outstripped the ability of separate software applications used in these large organizations to keep pace with their fast-changing complex data management demands," said Carl Mostert, CEO of Spescom Software. "Large and highly complex organizations, whether they are managing nuclear power plants, the Space Shuttle, or submarine fleets, simply cannot operate with optimal safety, security or efficiency under the fragmented computing and software environments that have evolved." Key Spescom customers include Constellation Energy, Continental Express, AmerenUE, Cities of Las Vegas and Dayton, Lloyds Register, United Space Alliance, Entergy, Northeast Utilities, London Underground, Network Rail, to name just a few. Needless to say, Spescom will undoubtedly add more clients as well as exploit relationships with those currently in its stable. As its customers --new and existing--needs grow, Spescom's R&D will provide more services and products to expand initial revenues and relationships. The numbers work, too. Speaking of revenues, the metrics of Spescom are also compelling. The market cap is $14 million. For the trailing twelve months the company posted revenues north of $8.5 million. The math is simple to compute the all-important price to sales ratio, which comes in at an impressive 1.70, an extremely compelling number for a smallcap company.  Insiders-- for whom I can find no sales or even 144 filings since February 2004-- hold fifty-six percent of the shares. For those investors who fixate on these indicators, management's commitment is obviously strong as well as its stated desire to continue to add shareholder value. Spescom's current sales pipeline includes $28 million of identified eB sales through calendar 2005. The company also posted its third consecutive year of margin growth culminating--for now--at 72 percent for fiscal 2004. Regulators on line two... Another facet --among many--to Spescom's place in the universe is the gathering storm of expensive legal and regulatory compliance, best categorized with the comprehensive Sarbanes-Oxley legislation. Anyone who doesn't understand the impact of these draconian corporate reporting requirements shouldn't be investing or running a company, in my opinion. A company no longer has the option of avoiding compliance with these stringent and ever-changing reporting requirements. All documents, not just financial, must be available to finalize corporate compliance in an extremely precise and cost-effective manner.  As we said previously, enter Spescom. We believe that the potential for Spescom, especially given its flexibility in both providing initial solutions and growing those solutions alongside a customers' developing needs, makes it an extremely unique company in a crowded space. For further information, visit the company website: http://www.spescomsoftware.com  As well, a recent corporate profile is available here: http://www.trilogy-capital.com/tcp/html/spco.htm Unlike a lot of smallcap companies, Spescom has already demonstrated the ability to prospect and win significant deals with revenue-expandable customers. We suspect that trend to continue and see the shares as a decent opportunity for impressive growth over the next twelve months and beyond.   PRESS RELEASE Spescom Wins Contract with Leading Defense Contractor BAE Systems to Provide Advanced Management Software for UK Submarine Fleet $300,000 Agreement Represents Major Contract Win for Company's Proprietary eB Enterprise Content Management Solution SAN DIEGO, CA, April 12, 2005 -- Spescom Software Inc (OTC BB: SPCO), a developer of next-generation enterprise software solutions that organize and manage widely disparate computer data for the world's most complex organizations, has been awarded a contract valued at over $300,000 from BAE Systems, one of the world's largest defense contractors, to deploy its next-generation eB software to manage key aspects of the United Kingdom's entire fleet of naval submarines. Spescom has successfully completed the implementation of the solution together with Computer Sciences Corp (CSC), the information technology systems integration partner selected by BAE. The contract is the latest demonstration of the unique capabilities of Spescom's eB software platform to enable organizations to manage the millions of pieces of data generated by and distributed among different types of software applications.  For the contract with CSC and BAE, Spescom Software has implemented a unique integrated solution to manage a range of different types of documents and data at the BAE Systems Submarine design and manufacturing plant, located in Barrow-in-Furness, Cumbria, U.K.  "The explosion in growth of computer-generated data that accompanied the Information Age has long ago outstripped the ability of separate software applications used in these large organizations to keep pace with their fast-changing complex data management demands," said Carl Mostert, CEO of Spescom Software. "Large and highly complex organizations, whether they are managing nuclear power plants, the Space Shuttle, or submarine fleets, simply cannot operate with optimal safety, security or efficiency under the fragmented computing and software environments that have evolved." Organizations such as nuclear power plants or the UK's submarine fleet literally hold millions of different pieces of information in many disparate software applications. Furthermore, the information is always changing, whether due to repairs, replacement, maintenance or other dynamic factors.  Spescom's eB software enables not just the consolidation of this information into a single coherent platform, but also has built-in business process rules for effective management of change, catering for the constantly changing environment caused by maintenance and expansions to plants or systems.  "The contract award by BAE Systems, one of the world's largest and most respected defense contractors, is a powerful recognition that our eB platform can perform critical functions in the complex document and data management environments of the defense industry," said Mr. Mostert. "It is just one example of the potential opportunities in our multi-million-dollar target market sectors of energy, utilities, aerospace/defense, homeland security and other industries.  We believe that our eB product platform fulfils critical business needs in these industries through our proprietary capabilities to manage both structured and unstructured data, as well as to ensure high levels of information integrity." Under the contract Spescom implemented a number of services for BAE, including a Drawing Distribution and Management solution based on eB that is replacing BAE's aging system, originally installed in 1994.  The Spescom eB system will provide a range of critical services, including automated drawing distribution, requisition and recall facilities. This solution will also address a number of work management requirements, and will control the generation of prints to be used in the production process. The contract also calls for Spescom to expand its eB solutions for BAE in the near future across several areas of document and data management. Among them, eB will be used as the basis for a Product Breakdown Structure, and will allow documents and drawings to be linked to the physical items which make up the submarines.  This will support the implementation of comprehensive change-management processes, and will form the basis of "As-Planned" and "As-Built" baselines.  BAE Systems is an international company engaged in the development, delivery and support of advanced defense and aerospace systems in the air, on land, at sea and in space.  It is one of the largest defense contractors in the world with over 90,000 employees operating on five continents. CSC is one of the world's major IT services companies with annual revenues of more than $17 billion, with 79,000 employees in 80 countries. "Contracts with large enterprises such as BAE represent a key component of Spescom's business and growth plan," said Mr. Mostert. "Such contracts can roll out in stages, with additional substantial value at each step. Spescom's strategy and products are designed to capitalize on these contract expansion opportunities, to enable us to grow revenues with existing customers.  We will be aggressively looking at further opportunities for significantly expanding our footprint within this customer."    About Spescom Software Spescom Software is a developer and marketer of leading-edge content and configuration management software and solutions for complex applications in energy, homeland security, defense and other sectors that provide the unique ability to manage disparate types of content and other data on a single platform. The Company's proprietary eB platform provides extensive enterprise content management (ECM) functionality, together with best-of-breed configuration management capabilities. These capabilities enable the secure capture and storage of both structured and unstructured information, in addition to the ability to organize, control and manage this information.  Spescom's eB software solution revolutionizes data management through an innovative new paradigm of data management that re-invents how organizations store, track, access, and use their enterprise's data to maximize efficiency and guarantee accuracy and integrity of the data.  Spescom  believes its eB platform is the first product capable of providing customers a unique multi-dimensional view of an organization's information, whether it is so-called structured information  in a traditional database , or unstructured data that might be in an email, video, pictures or any other kind of information The Company's one-stop solutions provide rapid access to accurate information regarding its clients' assets, products and processes, resulting in improved customer satisfaction, productivity, regulatory compliance and safety.  It achieves this through eB's unified suite of document, configuration and records management technologies, based on its powerful proprietary solutions platform.  Key customers include Constellation Energy, Continental Express, AmerenUE, Cities of Las Vegas and Dayton, Lloyds Register, United Space Alliance, Entergy, Northeast Utilities, London Underground, Network Rail, and many others.  The Company is headquartered in San Diego, Calif., with an international sales and support center in London.  For more information, please visit the Company's Web site at www.spescomsoftware.com. To view daily and historical stock quote data, and recent Company news releases, please visit http://www.trilogy-capital.com/tcp/spescom.  To read or download Spescom's Investor Fact Sheet, please visit: http://www.trilogy-capital.com/tcp/spescom/factsheet.html. Cautionary Statement Except for historical information contained herein, the matters set forth in this release include forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, the effect of the Company's accounting policies, potential seasonality and other risk factors detailed in the Company's SEC filings. For a discussion of additional risk factors relating to Spescom's business, see Spescom's annual report on Form 10-K for the fiscal year ended September 30, 2004 and quarterly reports on Form 10-Q for the quarter ended December 31, 2004, including the discussion in Management's Discussion and Analysis of Financial Condition and Results of Operations contained therein. Contacts: Spescom Software Carl Mostert, CEO John Low, CFO (858) 625-3000 or Investor Relations Paul Karon, Trilogy Capital Partners, Inc. 800-342-1467 paul@trilogy-capital.com   We Value Your Feedback Got comments, questions or suggestions? 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