VERY POSITIVE COMMENTS FROM B of A CONFERENCE:
Wednesday February 2, 2:47 pm Eastern Time
Company Press Release
SOURCE: Banc of America Securities LLC
Software for the 'New' Economy Provides Investors
With Significant Opportunity
Outlook for E-Business Software Companies Remains Robust as
Businesses Develop More Comprehensive Strategies
SAN FRANCISCO, Feb. 2 /PRNewswire/ -- The following is being issued by Banc of America Securities, a member of the
National Association of Securities Dealers, CRD number 26091:
With technology driving the ``new' economy, e-business software continues to play a critical role in re-engineering the way
companies do business, thereby providing investors with significant opportunity in this sector, according to Banc of America
Securities' senior Internet software analyst, Greg Vogel.
(Photo: newscom.com )
Vogel made his comments to investors yesterday at the 17th Annual Banc of America Securities Technology Conference,
which runs through Friday, February 4 at the Ritz Carlton in San Francisco. This year's Tech Week will feature 195
presentations from public and private companies representing a broad spectrum of investment opportunities in
communications services, computer and peripherals, distribution, networking, semiconductor, software and Internet
industries.
During his remarks, Vogel highlighted several emerging trends in the e- business software space. He noted that as traditional
bricks-and-mortar businesses continue to develop more comprehensive e-commerce strategies, they continue to look to
implement software that will increase revenue and reduce costs. E-Customer Relationship Management (eCRM) has become
the center of the software universe and infrastructure software has become increasingly important as well, creating a
significant market for companies in this sector, according to Vogel. He also told investors that new technologies are enabling
increased interaction, with connectivity truly becoming the ``killer application.'
Vogel noted that such things as interactivity, scalability and universal access through the browser have enabled the Internet
revolution. And, as businesses have recognized that they cannot afford to ignore the Internet, a whole new cycle of software
has emerged. Significant growth has occurred and will continue to occur within four principal E-Business software categories,
according to Vogel: (1) e-commerce (for enabling the transaction) (2) content management (which allows sites to dynamically
display content); (3) e- marketing (for customer profiling and personalization); and (4) customer support (to increase
customer interaction over the Internet).
``In 1999, Internet software companies collectively generated a 350% return on investment,' noted Vogel. ``And, these
companies' fundamentals remain compelling, especially as corporate information technology groups continue to make
e-business spending a priority.'
About 9% of companies surveyed by Forrester Research expect to spend more than $10 million on e-business this year,
Vogel noted. Sixty-eight percent of those surveyed expect to double their total e-business spending in 2000.
Consolidation should occur in this space, according to Vogel, as businesses seek more integrated applications. Businesses
will increasingly rely on a combination of tools including back-office integration, content management, e-marketing, and
customer support. Vendors that can extend beyond point solutions and develop a broad product platform will emerge as the
leaders, Vogel predicts.
Vogel recommends several companies within the e-commerce software sector that already are extending a variety of these
essential products to their customers. His top picks include: Allaire* (Nasdaq: ALLR - news; $137-1/2, Strong Buy),
BroadVision* (Nasdaq: BVSN - news; $134-13/16, Strong Buy), Intraware* (Nasdaq: ITRA - news; $54, Strong Buy),
Macromedia, Inc.* (Nasdaq: MACR - news; $68-1/2, Strong Buy), and Vignette* (Nasdaq: VIGN - news; $191-5/32,
Strong Buy).
Vogel believes that the e-business software market, currently a $6 billion market, could reach $18 billion by 2003. ``We've
only scratched the surface in this area,' said Vogel. ``BroadVision and Vignette -- two leaders in this space -- face no
competitor half of the time. There is significant room for growth as new customers emerge with greater needs.'
Banc of America Securities LLC (BAS), a subsidiary of Bank of America Corporation, is a full-service investment bank and
brokerage firm. With principal offices in San Francisco, New York City and Charlotte, BAS employs more than 4,000
associates in offices around the country, and with affiliates, offers capabilities worldwide.
Bank of America Corporation, with $633 billion in total assets, is the holding company for the largest bank in the United
States, with operations in 21 states and the District of Columbia.
Banc of America Securities LLC currently maintains a market in ALLR, BVSN, ITRA, MACR, and VIGN. Banc of
America Securities LLC was co-manager of a public offering for ALLR and BVSN in the last three years. |
