Webcast Conference Call a Powerful Tool for Public Companies

OCTOBER 9, 2000 -- For public companies, 'tis the season for earnings conference calls, says LeFile.Com (www.lefile.com), the leading online magazine for senior corporate executives.

Now, with new Securities and Exchange rules in place demanding timely disclosure and equal access by all investors to that information, companies are turning to their Web to simulcast to the world the telephone conference calls they previously held only with financial analysts, reports LeFile.

"We predict that this upcoming period of company earnings announcements in October will see a record number of participants on the conference call schedule," said LeFile's editor William Dupuy. "The reasons - first, the train is moving and companies are beginning to realize they shouldn't be left on the platform waving goodbye to their competition.

"Second, despite the hang-ringing pronouncements that more companies would freeze up rather than open up following adoption of the SEC's Regulation FD, there's a better chance that more will open up their calls because the issue was so highly publicized. If opening up a conference call is a safe move under the SEC's rules, simulcasting it on the Web goes further in helping meet the spirit and the letter of the guidelines. Access to it live and in archive is demonstrable evidence of the company's intent to communicate broadly and fairly."

Getting all your ducks in a row for a Webcast shouldn't be difficult. But LeFile notes that even for some experienced companies -- there could be "many a slip 'twixt cup and lip."

In its October 9, 2000 edition, LeFile reports on four corporations, selected at random, and their efforts to release corporate information and then to hold a Webcast conference call.

Company #1: Dell Computer (Nasdaq: DELL) did an overall commendable job on October 4, when it Webcast an on-site analysts meeting. Analysts were invited to company headquarters to hear near-term prospects for the company, which included an earnings shortfall of 1-2 cents in the upcoming quarter. The analyst meeting was planned for two phases: after the close of financial markets at 4 pm EST on 10/4/2000, with the meeting recommencing at 9 am EST on10/4/2000.

LeFile's Evaluation: Dell did nearly everything right. The company issued a press release at 4:06 pm EST on 10/4 stating in outline form the gist of the substance of the meeting. The press release clearly stated that earnings would be off 1-2 cents. Dell's release told where to go to listen to and see the presentations by management. Presentations were Webcast live and then archived in the IR section of the Web site, which also contains archived Webcasts of four other recent events -- Dell's July annual meeting, the August earnings call and an
off-site meeting held by the brokerage firm Salomon Smith Barney.

Issues: Dell did nearly everything right. First, to get in on the Webcast, you had to have the latest Windows Media Player from Microsoft. Typically, Webasts offer the program on two platforms, Media Player and Real Player. On the day of the Webcast, LeFile was equipped only with latest Real product, so it took more than a half hour of prescious presentation time to download the Windows software.

Second, the Webcast was promoted only at 4:06 pm EST on the day it started (and presumbably six minutes after it started), leaving all but the most closely informed rushing to catch up.More important, however, if you depended on Dell's Web site to read the earnings warning press release, you wouldn't have seen it there for another day. Incredibly, this stickler-for-details company apparently forgot to post that critical press release on its Web site until nearly 24 hours after it was issued. Thus, if you heard or read the CNNfn stories, or caught Bloomberg audio, you heard of Dell's expectations. But you wouldn't have seen the text unless you poked around in the other financial news portals. (Note: LeFile monitored Dell's site through October 5. Although the release that appeared on the site was dated October 4, it didn't appear until late on the 5th.)

Company #2: The Limited (NYSE:LTD) regularly announces sales as well as earnings via conference call. The sales report announcement on October 5 followed a sucessful pattern.

LeFile's evaluation: No frills, no problems, nice job. First, a press release two days in advance announced the event and the Web site address to tune in to the call. On the day of the call, a press release announced the sales facts along with a reminder of the Web siteaddress, in addition to an 800 number, for the call.

Company #3: Cedar Fair (NYSE:FUN), a publicly held operator of amusement parks in the midwest gets a perfect rating from LeFile for its August 4 conference call and Webcast.

Cedar Fair's objective: Issue a press release days in advance of the actual earnings announcement, the URL of the Webcast. Then, on the day of the earnings announcement, the company's plan called for an 8 a.m. press release followed by the pre-announced 11 a.m. Web cast.

LeFile's evaluation:These elements came off without a hitch.

Company #4: Robbins & Myers (NYSE:RBN), maker of fluid management products, scores high for its 4th quarter earnings announcement call planning and execution.

Scenario: Announce via PR Newswire on October 2 the fact that the earnings release and call were scheduled two days later, on October 4. Then, on October 4, announce earnings about 10 a.m., well in advance of 2:30 p.m. call/Webcast.

LeFile's evaluation: Robbins & Myers followed through nicely. The only hitch: a glitch in the income statement itself which no doubt to light during the conference call with analysts. The company had to release a clarification of the accounting error later that afternoon.

Details of the report can be found at www.lefile.com/articles/irnotes/conferencecalls2.htm

Contact: dupuy@lefile.com
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