Today's y2k wrap up...
VIAS tanked today almost 6 points after announcing earnings, recovered but still down 2 for day. Earnings beat estimates, balance sheet a thing of beauty, current ratio 4, stockholder equity way up. What gives? Close inspection of revenue breakout showed SERVICES revenues down but license fees way up. I think this is the critical part. The market has been rewarding the y2k service integrators, a theme that is getting boring but reality is boring. License fees not the greatest engine for growth. CEO did mention that a major fixed price contract was not complete, when it is complete, margins will improve. So maybe service fees not reflective of future potential.
PTUS beat estimates by wide margin yesterday, hardly any action in stock today. Again, license fees up, service fees OK. Alot of big writeoffs. PTUS quickly trying to catch up in integration market, bought y2k renovation wing of insurer.
Anyway, here is proof once again IMHO that the service integrators are still the winners in the y2k lottery. And TPRO is a systems integrator, I don't think it makes a difference if it is on the IT or non-IT side when viewed form this perspective.
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