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Technology Stocks : Systemsoft Inc. (SYSF)

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To: David R. Lehenky who wrote (2885)1/6/1998 5:32:00 PM
From: Eric Jorgenson  Read Replies (2) of 3529
 
<16% net margin>

I think the net margin on SystemWizard business might well continue to be small for now. The First Call consensus estimate of $0.06 corresponds well to your 16% net margin estimate, but only for the $10MM in "other" revenues: 0.16 * 10MM = 1.6MM, or $.06 per share. Analysts apparently continue to assume that the net margin on SystemWizard revenue will be negligible for the time being. This may not be a bad assumption since the product become profitable only in the last few months. On the other hand . . the "high" First Call earnings estimate for the coming quarter is $0.09, so someone apparently concurs with you.

Regards,
Eric
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