Open Text Message Board - Msg: 11248124

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Technology Stocks : Open Text

OTEX 37.87

-0.7%

Oct 30 3:59 PM EDT

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To: Michael Pascoe who wrote (1145)	9/14/1999 3:14:00 PM
From: Skywatcher	of 1195

Open Text Slips On Revised Estimates By Susan Taylor OTTAWA (Reuters) - Software developer Open Text Corp. (Nasdaq:OTEX - news) took it on the chin Tuesday, sliding nearly 12.3 percent as it advised analysts to drop estimates for its first and second quarters. Stock in the Waterloo, Ont.-based firm slipped C$4.35 on the Toronto Stock Exchange in light trade to hit C$31. That sits between a high of $62 this year and a low point of C$16. On Nasdaq, the issue dropped $3- 3/16 to $20- 7/8. Chief Financial Officer Thomas Hearne said he is telling analysts to drop estimates for the first and second quarters from 2 cents to 4 cents due to impact of recent acquisitions. ''There'll be some short-term dilution that will help us long-term to better revenue and hopefully better earnings,'' he told Reuters. Open Text is buying Ottawa software developer Microstar Software Ltd. in a cash deal valued at between C$6.5 and C$7 million and Ottawa software firm PSSoftware Solutions Ltd. in a cash and stock deal valued at about C$5 million. The consensus estimate from five brokers polled by First Call/Thomson Financial for Open Text's first quarter was 15 cents before the downgrade. It is expected the results will be reported in the last week of October. The second-quarter consensus estimate was 24 cents. Open Text develops software that helps employees share and manage information. The stock has staged a weak performance in recent weeks, closing at C$37.45 one week ago, down from a recent high point of C$50.40 in mid-July. ''The company appears to be bursting into flames,'' said Duncan Stewart, fund manager at Tera Capital Corp. in Toronto. ''It's just getting killed.'' The company did announce Tuesday morning that it had struck a technology alliance with German software vendor SAP AG (NYSE:SAP - news) . NOT GOOD...however I think the long term is still ok. chris

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