Our first fiscal year, we were profitable.
Not long ago, the term 'business model' was not exactly on the tip of everyone's tongue. Then, in the early to mid-1990s, 'business model' became a catchphrase that described how a company makes money or saves money.
One hundred percent of our earnings are reinvested in the company, and a great deal of that goes to research.
I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.
Why can't modern tech companies both grow and turn a profit at the same time?
I certainly think you could look at the business side of how WWE was run, which was as a conservative company with little debt and strong cash balance.
One, I love the creativity. I love the ability to create a capital structure that is appropriate for a company, no matter what field it happens to be in.
There was a time when a company could not sell its shares to the public unless its revenues were growing and it was turning a profit. Companies that lost money were deemed too risky for public investors.
You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.
Big companies are looking closer term, and even the most technological companies spend less than 1% of sales on research. Startups have suffered the burst bubble.
If a company's stock is undervalued - as many managers believe theirs is - a repurchase may offer the best payoff of all.
