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Technology Stocks : Project Software: PSDI
PSDI 0.00Mar 22 5:00 PM EST

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To: Steve Warkentin who wrote (32)4/2/1997 3:50:00 PM
From: Todd D. Wiener   of 134
 
Well, my wallet's feeling a bit thinner today. European sales comprise about 25% of PSDI's total revenues, yet they make up only 5% of operating income. So even if they lost all of the European income, it would amount to only .02 this quarter (based on last year's income). So they must have lost a lot of money from high European expenses. The revenue shortfall could be explained by the Europe problem, but that wouldn't likely cause them to miss the quarter by .18. And the income contribution from the MAXIMO ADvantage product is pretty small.

I can't see how these two things are causing this much of an earnings shortfall.

I'm not buying anymore yet.

TDW
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