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Technology Stocks : Aspect Telecommunications (ASPT)
ASPT 0.00010000.0%Jan 2 9:30 AM EST

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To: Sunil Veluvali who wrote (902)4/14/1999 6:15:00 PM
From: JAPG  Read Replies (1) of 2018
 
Sunil,

Revenues were 100.1 millions ( 51.1M product & 48.9M in services). The drop is in product wrt Q4/98 and Q1/98. As far as services is concern they keep on growing quarter after quarter. It is very difficult to go down in services because it is a momentous stream as I have indicated in the past.

The company problems are in product sales as they transition, stop selling their hardware and have to make up revenues from more software and services. An alternative is to act as a system integrator and sell other people's hardware when you sell a complete system (LU, NT or whatever the user wants). This helps sales but not margins in a big way.

The big issue is how good is the new software they are preparing.That's what CSCO paid $2bn's for in the Geotel deal.

JAPG
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