From Robbie Stevens.
Portal Software, Inc. NASDAQ: PRSF $9.75 Long-Term Attractive F2002E EPS: $0.14, down from $0.15 F2003E
EPS: $0.23, down from $0.26
Marianne Wolk, Wireless Data/eCommunications “Portal reported far better results than expected, particularly
impressive in this difficult economic environment,” said Wolk. “Amidst this backdrop, the company delivered results
of $81.1MM and $0.04 - meeting its November guidance and bucking the intensifying worries across the Street
throughout the last few weeks. Moreover, the quality of the results was very high: (a) Deferred revenues rose 50% to
$67MM; (b) Repeat customers were 60% of revenues; (c) New customers numbered 40; (d) Deal size rose from $750k
to $1.2MM; (e)DSOs rose just 1 day to 67 days. We are increasingly optimistic as Portal enters C2001 with improved
near-term visibility, a solid pipeline and lowered expectations. If one or several of the following items were to occur,
we would turn positive on Portal: (a) an improved macro environment; (b) the rollout of GPRS services in Europe in
2H:C01, where Portal should benefit from new data subscriber additions by Vodafone, Sonera, Telenor, France
Telecom, Deutsche Telecom, British Telecom and the countless numbers of other wireless carriers that have yet to
announce a 2.5G/3G billing system; (c) improved demand for broadband services where Portal has achieved good
early share; and/or (d) a smooth transition to a new CFO providing confidence in strong financial management. In
the interim we have cut our forecasts for C01 modestly, eliminating some of the risk to 2H from the absence of these
factors.” |
