Relationship With Research In Motion Is Key to Chalk Media's Potential Near-Term Growth

Earlier this week, Stewart Walchli, president & CEO of Chalk Media Corp. presented a very positive story about its mobile communications software to investors in Manhattan.

Walchli, a former technology investment banker with CIBC World Markets in Canada, described Chalk's Mobile Chalkboard, a mobile content delivery system, that is being endorsed by Blackberry maker Research in Motion (RIM). Mobile chalkboard provides an authoring environment to create and publish customized mobile content -- known as "pushed" mobile content -- for Blackberry enterprise users.

Chalk developed this software together with RIM's core development team for integration with the Blackberry Enterprise Server. Pushed mobile content can be used for learning & training, compliance, product information and marketing programs, among other applications. Companies that implement Mobile Chalkboard could achieve increased productivity through the availability of documents away from the office, improved communication and availability of required business information.

The company introduced Chalkboard in May at a trade show in Orlando, and response has been highly positive, the CEO said. The company is pinning its initial growth hopes on its relationship with RIM, which is introducing the company to several hundred of its top enterprise customers.

Going forward, Walchli hopes to develop similar relationships with other major technology companies.

An analyst report from Westwind Partners, Toronto, indicates these investment positives: the partnership with RIM adds credibility; several potential "anchor" customers could serve as flagship or "referenceable" names to validate the company's enterprise mobility platform; significant leverage in the operating model provides further upside potential; and the that RIM might acquire Chalk if sales take off.

On the other hand, the report suggested some investment risks: sales traction could take longer than expected; quarterly results could be variable due to large software license deals that could slip into future quarters; fixed-price contracts and foreign exchange risk; and the possible inability to secure patent protection could deteriorate the company's competitive advantage.