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Technology Stocks : Rogue Wave Software (RWAV)

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To: John Ritter who wrote (201)1/12/2000 8:34:00 PM
From: Karl Drobnic  Read Replies (1) of 231
 
RWAV reports that it had 32 deals over $50,000 in Q1. The average deal size was $110,000/deal. Europe sales were up
11%, the 3rd best European quarter in RWAV history. they are still looking for personnel to beef up European sales. Most
importantly, the majority of Q1 deals differ from the past in that the majority of deals now come with recurring revenues
rather than being one-time licensing deals. Only 4% of revenues in Q1 came from Nouveau, but Nouveau landed the biggest
deal. Going forward, there will be more emphasis on bundling the complete product line with the Nouveau product. StingRay
was 15% of revenue and will be operated as a separate division. They've hired a new GM to run it, who comes over from
Compaq. This is strong performance considering RWAV is going through an internal make over. There is a strong emphasis
on beefing up the sales force, and there is now a product driven strategy in place, giving the sales force more ammunition to
work with.
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