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A small shark with very big teeth. That's how Lou Ryan, executive VP of sales, describes Delrina Corp. "The PC-based software marketplace is not for the meek and weak-hearted," he adds. Ryan isn't kidding.
For starters, Delrina, which sells fax and forms software for PCs, got its seat on the Toronto Stock Exchange just months after its 1988 debut by swallowing one of its investors, software vendor Carolian Corp. Since then, Delrina's rise from a fledgling company to one with sales of more than $70 million has been marked by lawsuits and allegations of arrogance, which Delrina brushes off.
Shark's teeth have helped Delrina dominate the fax and forms software markets for the past six years. Today, the company controls 60% of both markets, according to analyst Scot Land of Marathon Securities in Seattle, which has underwritten some of Delrina's public offerings.
Vision Quest
Now Delrina wants to become the leading provider of PC-based voicemail, fax, online services, and electronic mail. "Our vision is to own communications on the desktop," says Albert Amato, Delrina's chief technical officer. Amato co-founded the company along with Ryan, chairman and CEO Dennis Bennie and president Mark Skapinker.
Delrina is venturing beyond the desktop, offering access to the Internet and attacking what is known as the Soho (small office/home office) market. Also, Delrina has reorganized into five business units and is making its presence known internationally. Its growth strategy entails refining existing products, acquiring other companies, developing strategic relationships, and making distribution deals.
Along the way, Delrina could run into opposition from much larger companies that have the money and know-how to pose viable threats, especially Microsoft Corp.
When Microsoft announced last year that it would offer fax capabilities in Windows 95, Delrina's stock price dropped to $13.10 from $20.60. Though Delrina later resolved this issue by striking a deal with Microsoft, it remains vulnerable to similar attacks.
Also, some software customers are chafing at Delrina's tactics. A recent policy forcing customers to register copies of Delrina's WinComm Pro software by modem or calling a toll-free number made some users unhappy. Users could ignore as many as 15 registration demands generated by the software; those who ignored Delrina's registration demand found their software locked up. Delrina reacted to customer...