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Technology Stocks : Pure Atria Corp(PASW) and Rational(RATL) Merger

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To: Randy Ellingson who wrote (143)8/16/1997 1:10:00 AM
From: Brad Rogers   of 147
 
Filed 8-K yesterday (Tuesday). Pure Atria revenue was $23 MM,
substantially lower than most expectations of above $30 million. Mgmt
gave guidance after the filing stating that there will be Esignificant
execution risksE over the next three quarters. Revenue guidelines will
push fiscal 1998 (ending March 31) into the $315 MM range and about
$0.57/share. Fiscal 1999 will be around $410 MM and $0.85 (mid-range of
$0.80-$0.90 guidance) with comfort at 25% growth rate. This has
definitely become a Eshow meE stock for Wall Street since the company
originally claimed the deal would be EneutralE to earnings. Nothing new
but expected weak underperformer while numbers ramp up in 1998.
Thanks for the kind sentiments. The stock may continue to be weak for
awhile but watch it closely. This will work out within 12 months and the
mgmt team is solid.
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