BEARS
5. Davox Corp.

By Ross Kerber, Globe Staff, 05/18/99

nother group of disappointed stockholders are those who hold shares of Davox, the Westford-based maker of computer software and hardware for telemarketing and collection agencies. Shares traded at 6 3/16 on March 31, 80 percent below their level of 311/8 a year earlier.

The drop began in April 1998 when investors grew worried about competition in the industry. Later in the year the company missed expectations for several quarters because of poor sales in Germany and Britain and lower-than-expected revenue from its services business.

Some analysts also complained Davox paid too much when it purchased a closely held firm in Richardson, Texas, for $85.4 million in stock in May 1998.

Davox vows that it will recover. In March its chief financial officer, John J. Connolly, reversed his decision to resign and said he would remain to work with Davox chief executive Alphonse Lucchese.

Also this year, the company announced 25 new corporate customers, including Continental Airlines.

Davox will market itself more aggressively, says its vice president for marketing, Jeffrey Anderholm, who joined the company in February.

''Davox was traditionally focused on sales and engineering, but there wasn't that much volume ... to the rest of the operation,'' Anderholm said.

This story ran on page D23 of the Boston Globe on 05/18/99.
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