Jatin,
You're starting to lose it buddy. You've hung in there since
the single digits and seen a meteoric rise, and now you're complaining? Give me a break. Have you ever worked for a high-tech company that sells product to businesses? There's no way they could have known the impact on sales on December
2nd; most sales are booked in the last 2-4 weeks of the quarter.
BTW, here's Harmon's take on todays events:
Harmon 10 for 2000 Update: January 12, 2000
ALERT from Steve Harmon:
SANTA CRUZ OPERATION (NASDAQ:SCOC)
*Revenue and earnings expected to be flat for Q4 and 1Q
*For the first quarter ended December 31, 1999, the
company expects to report revenues in the range of
$52.5 to $54.5 million, compared with $52.7 million
reported in the first quarter of fiscal 1999.
*SCO expects net income for the first quarter of
fiscal 2000 to be in the range of $2.5 million to
$3.2 million compared with $3.1 million reported in
the first quarter of fiscal 1999, resulting in
earnings of $0.06 to $0.08 per share, fully diluted.
Santa Cruz Operation today said its revenue and earnings
may not be as high as the general analysts consensus based
on companies delaying the procurement cycle for software
and services being on Y2K concerns. This has caused SCOC
stock to drop and fluctuate today based on the news, which
is a concern but doesn?t change our outlook on why we
added SCOC to our stock list.
The three areas that provided a foundation for SCOC being
named to the Harmon 10 for 2000 I expect to show strong
growth: Tarantella, services, and cross-platform
networking.
Underlying my belief in SCOC is its core competency in
network OS which now embraces Linux, the popular and free
source code OS.
I expect the post-Y2K buying cycle to pick up now that the
new year has begun and confidence in computer networks is
strong now that the Y2K fear inflection point has passed.
As Tarantella, SCOC?s technology to integrate mainframes,
PCs, UNIX, Linux in networking gains a foothold bridging
disparate computing platforms we may see high demand for
its solution.
With its expertise, solutions and scalability the ultimate
driver of SCOC I believe could be an acquisition by one of
the larger and more capitalized Linux companies. For
example, I believe that Red Hat (RHAT) or VA Linux (LNUX)
in particular, could benefit from being a total open
source solution provider for network OS.
The next two quarters I believe will provide enough data
on SCOC?s initiatives in Linux and integrating network OS
and computing platforms to determine if SCOC can realize
the vision of integrated networking.
In spite of the revenue and earnings warning from SCOC the
key to me is not what SCOC has done but what SCOC can do
given its embracing of Linux and integration of computing
platforms. |
