Sequoia Software Corp. (SQSW) Message Board

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Technology Stocks : Sequoia Software Corp. (SQSW)

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To: RoseCampion who wrote (60)	6/22/2000 4:01:00 PM
From: Mark Z	Read Replies (1) of 102

From Briefing.com today: 14:57 ET Sequoia Software (SQSW) 12 1/16 +1 7/16 (+13.5%): Microsoft introduction of .NET generation of software is pulling investors into shares of SQSW, a developer of XML-based Internet software. Microsoft's .NET platform is based on XML... Earlier in the week, the companies announced an expanded alliance to drive the adoption of XML-powered interactive e-Business portals... From Tuesday: Sequoia Software (SQSW) 10 1/16 This provider of XML-powered e-business software is trading up $1 1/4 in the pre-market. Sequoia and Microsoft announced an expanded alliance to enhance the ongoing development, delivery and marketing of Sequoia's XML Portal Server (XPS). The partnership will also accelerate the development of new e-business solutions built upon Sequoia's technology, which utilizes the Microsoft enterprise solution platform. XML stands for an Extensible Markup Language and offers features that HTML does not such as the ability to define your own tags and attributes. The stock is a recent IPO which opened at over $12 in mid-May, then fell below $6 later in the month, but the stock has been climbing right back up to the IPO price. In the first quarter, SQSW reported revenues of $4.0 million, a 285% year-over-year increase, 19% sequentially. Gross margin came in at 69.8%, versus 46.9% in the first quarter of 1999 as a result of more higher-margin XPS sales in the first quarter of 2000. Finally, the company has done a good job signing up customers - SQSW added 18 new XPS customers in 1Q00 versus three in 1Q99. The problem with SQSW is that there are low barriers to entry for these software providers. Increased competition could easily come in and exert margin pressure. This stock could run for a couple of days because of its low price and small float (only 5 million shares), but it's a risky play.

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