Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

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Friday, May 30, 2008

Convera(R) to Create Vertical Search Site for Kaulkin Media

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VIENNA, Va., May 30, 2008 /PRNewswire-FirstCall via COMTEX/ ----Convera Corporation (Nasdaq: CNVR) -- www.convera.com -- a leading provider of vertical search services for publishers, today announced that it has signed a contract with the publisher Kaulkin Media to build a vertical search engine for the accounts receivable management industry.

Kaulkin Media is the worldwide leader in providing timely news, information and analysis on debt recovery across all industries and sectors. The Kaulkin Media web portal insideARM.com (R) http://www.insidearm.com (R), formerly CollectionIndustry.com, is used as an essential workflow source by 53,000 members of the credit and debt collection community, including collection agencies, attorneys, debt buyers, bank and non bank lenders, creditors, and vendors who provide product and services to these organizations. Convera and Kaulkin Media will initially develop a vertical search engine focused on the management of accounts receivable and bad debt. Vertical search sites, vertical search toolbars and widgets are increasingly being seen by B2B publishers as a way of extending their brands into essential workflow of their online communities.

This online community of users will benefit from being able to use Kaulkin Media's expert news and analysis services alongside a vertical search engine that aggregates authoritative web content regarding the management of accounts receivable and bad debt.

The demand for debt collection services is expected to reach record levels as borrowers face the dual challenges of higher energy prices and mortgage rate increases, amid falling house prices and turmoil in the financial markets. The downturn may make debt collection much more difficult and expensive.

Convera and Kaulkin Media are both members of the Specialized Information Publishers Association (SIPA). SIPA is holding its annual conference June 1-3 in Washington DC. Representatives of Kaulkin and Convera are attending the three-day conference.

About Convera

Convera is a leading provider of vertical search services for publishers. Based on a semantic index of the Web, Convera enables publishers to generate additional revenue by creating customized search applications for specialist audiences under their own brand. Many of the world's largest publishers rely on Convera vertical search services to accelerate their e-publishing strategies, meet growing monetization goals and build loyal online professional communities.

About Kaulkin Media

Kaulkin Media is the worldwide leader in providing timely news and information on the recovery of debt in all industries. Kaulkin Media puts the news in perspective, providing unique insight into the challenges that face the industry, and facilitates collaboration among peer executives. Parent company Kaulkin Ginsberg's (www.kaulkin.com) analyst group conducts sector-specific research that provides a level of authority and in-depth analysis not found anywhere else.

The web portal www.insideARM.com (R), formerly CollectionIndustry.com, serves the needs of the entire credit and debt collection community, including collection agencies, attorneys, debt buyers, bank and non bank lenders, creditors, and vendors who provide product and services to these organizations.

SOURCE Convera Corporation

http://www.convera.com

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