American Express, for example, is rolling out a Periphonics' system that will allow customers to call its Travel Services computer to check and book flights using voice commands. The system is expected to cut the time and cost of transactions, allowing the Travel unit to boost bookings. Periphonics' systems run on RISC-based computers using the UNIX operating system and are designed for easy expansion. The company was founded 25 years ago and operated under Exxon's venture capital arm until a management buyout in 1986. The top managers have been with the firm for an average of 15 years.
Insiders own about a quarter of the outstanding shares.
Small technology firms often see customers delay purchases until the very end of the quarter in hopes of getting a good deal from managements desperate to meet earnings projections. That makes these stocks more volatile and explains the February surprise. That scare plus the decelerating top-line growth should have put investors on notice that more trouble might be on the way. The company had tough comparisons since it had booked a very large order from the Internal Revenue Service in the first quarter of FY97. Still, orders falling out of the quarter plus higher operating costs due to heftier sales and marketing expenses made for dismal results.