Purchasepro.com Inc. (PPRO) Message Board

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Technology Stocks : Purchasepro.com Inc. (PPRO)

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To: j g cordes who wrote (578)	4/26/2001 9:31:06 AM
From: Arrow Hd.	Read Replies (2) of 748

Listened to the CC this morning. Some notes based upon what I heard. --Introduced Clemmer. Appeared to be a no nonsense kind of guy. Long term probably a good move. Short term he could be very conservative and tighten up on aggressive accounting practices. There will be another financial update in a few weeks. (opinion- I would expect a lowering of expectations) --1Q had strong activity. Went through AOL activity which is a significant portion of business. Lot of business was in last days and could not verify credit worthiness or firm order policy from a business controls standpoint. Results in deferred revenue. (opinion- without Clemmer this would not have happened). Said some of this revenue already booked for 2Q but then later in CC said that this deferred revenue will be spread over next three quarters which leads me to believe it was not solid. (opinion- will Clemmer find additional booked revenue that is non-performing?). Interestingly, some "commissions" paid on deferred revenue but I can't figure out if this is just revenue sharing or real dollars. If real dollars and revenue no good there should be a reversal here or "credit on account". --Balance sheet strong. DSO is 130 days which seems very high to me. Cash balance to decline slightly over next quarter. --Current focus to strengthen AOL relationship. Marketing geared towards training AOL personnel. (opinion- this appeared positive. I believe AOL is firmly committed). Said there were 13 AOL deals. --Warrants issue. This was a marketing strategy and is paying off. No new warrants to be issued. No more to be repriced. --2Q forward outlook. This was a bit cloudy. A statement was made about the 2Q being "as good" as the 1Q. I think the next briefing in a few weeks has to clear this up. (opinion- analysts did not hit on this in Q&A. I see no way to come up with any kind of current estimates until there is more clarification from Clemmer). --Q&A. The usual financial questions which focus on minutiae and aren't very stimulating. One on demand issues resulted in statement that PPRO did not experience "quite the slowdown" that others did. Lawsuit discussed with position that it is without merit but dismiss motions were denied. On "cash vs: commitments" they said it will be about the same as 1Q. This is where the deferral issue came up again with the statement that the deferral revenue will be spread over the next three quarters so not all of it is going into 2Q. (opinion- this was not solid revenue). reiterated again that there will be more info to come in a few weeks. Above is a best efforts attempt to communicate what I heard on the CC. I currently have no position though I have traded PPRO in the past. My opinion is bracketed as such.

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