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Technology Stocks : Open Text

OTEX 34.56

-3.9%

Nov 7 9:30 AM EST

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To: Skywatcher who wrote (638)	11/18/1997 3:18:00 AM
From: Sirius Pointer	Read Replies (1) of 1195

The stock price here reflects the latest quarter's result. The story is still not bad: good products, continue penertration to large accounts, and decent visibility. But the latest quarter financial data also shows some negative perspectives. On the positive side, the company exceeded the estimate by 3 cents. But it appeared to achieve the number largely through tighter expense control. The sequentially down license revenue also showed some weakness in its growth rate. The first quarter is usually a tough quarter for a software company. But a company with quarterly revenue below 10M should have no problems in showing sequential growth if it's in the stage of exploding growth. The first call estimates shows the next three quartes: $0.01, $0.10 and $0.20. To achieve these numbers, the company will have to grow its revenue by more than 1.5M sequentially as opposed the previously achieved 1M range. As the expectation gets higher, so is the risk. I still like this company, but feel the price is probably justified given the slower growth rate and the higher risk associated with it. Tyler Lawton, are you still checking this thread? What's the story on the product side ?

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