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Technology Stocks : ObjectShare Nasdaq : OBJS over $24 in'94 making a comeback

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To: Buckey who wrote (57)	6/30/1999 6:38:00 PM
From: Raging Bull	Read Replies (1) of 78

Financials are in OUCH!!! I guess everyone knows that the 10Q is out and the 10K will be filed late (Notification of late filing). I could not see any encouraging numbers in 10Q other than they still had 1.6MM in cash. However deferred revenue jumped a million, accts payable/accruded compensation jumped 1.5 million, 500k in software was capitalized for the first time, and a new bank loan of 1MM popped up. We were aware of most of these things in February but I was expecting that March would be kind. For the balance sheet the only "improvement" was that accounts receivable were up 800k. This is not always a good sign because it could simply mean collection problems. I hit theproduct license revenue almost right on the nose in my estimate. I was surprised to see service revenenue off 400k (14%) after Christmas holidays. They must have a nasty bench problem. If they are good java programs as any consulting service company should have, we need them. We haven't been able to find any available. Perhaps I should call them when I am not too depresesed. The real shocker that blindsided me were the enormous expense increases. Inspite of lower service revenues, operating expenses were up 400K (the bench). The real shocker was the increase in sales general and administrative expenses (UP $1.2MM). I haven't seen much advertising lately. Goda and company must have gotten some huge bonuses. The other operating expense black hole also increased $1MM. They seem to throw out these 1MM expense increases like they don't mean anything. Even for my companies successful, growing, and highly profitable java services practice, we would never let expenses increase in any category in a quarter. I think there is a lot more explaining to do on these financials.

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