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Technology Stocks : Systemsoft Inc. (SYSF)

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To: Fred Puppet who wrote (264)8/29/1996 11:18:00 AM
From: Susan Park   of 3529
 
I read Fred's revenues and earnings analysis in 264 which was based on
a press release posted by Mark McCoy in 245. I don't think SystemSoft
is worthy of serious quantitative analysis, but if you must, here's my
outlook:

As Fred seem's to have deduced, current growth is due to one-time
development fees. In exchange for these fees, SystemSoft will almost have
to give away SystemWizard. Thus, the development fees recognized as
current revenues are really an advance payment, which reduces the
potential future revenues.

Fred, I notice that Mark never answered your call for interpretation of the
press release. The reason is that the growth numbers don't look good if you
look carefully. Rereading the press release, I get the feeling that
SystemSoft wouldn't mind if you misinterpreted development fees as an
increase in software sales.

In Mark's defense, he's not posting projections of revenues or earnings,
but he's posting projections for increased hype on Sept 24. Increased
hype might drive up the stock price, but it takes revenues and earnings to
maintain it. Sept. 25 or 26 might be good days to sell short.
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