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Technology Stocks : Wind River going up, up, up!

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To: Snowshoe who wrote (3311)6/22/1998 10:19:00 PM
From: Michael Greene  Read Replies (2) of 10309
 
FAS 123 Pro Forma Disclosures
If someone has time, it would be helpful to do a comparison
between WIND and other software companies. The more companies
included, the better.


Greg,
Here are the reported vs pro forma results for a sample of software
companies.

ESP / Pro Forma

symbol last Fiscal Yr prev. fiscal Yr two years ago

EFII 1.15 / 0.93 1.13 / 1.06 0.71 / 0.68
INTS 0.25 / 0.11 0.31 / 0.19 0.24 / 0.21
MSFT 2.63 / 2.32 1.71 / 1.48 1.16 / 0.99
MWAR (0.11)/(0.20) 0.11 / 0.09
NOVL (0.22)/(0.31) 0.35 / 0.33
ORCL 1.22 / 1.10 0.90 / 0.86
PTEC 0.87 / 0.67 0.73 / 0.69
RSYS 1.93 / 1.60 1.30 / 1.19 0.35 / 0.25
SYSF (0.76)/(0.98) (1.70)/(1.84) 0.16 / 0.13
WIND 0.17 /(0.23) 0.43 / 0.28 0.23 / 0.18

For the smaller companies in particular there is a strong and growing
impact from employee options on reported compensation expenses. This
trend can be expected to continue per the following comment in the
WIND annual report: "In future years, the annual compensation expense
factor is expected to increase relative to the fair value of stock
options granted in those future years."

Regards, Michael
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