*AV*--I am surprised Jeff hasn't posted this already.<GGG>
07/06 2:37P (DJ) ~Alydaar Up 13% On Report of Positive Analyst Comments
By Maria V. Georgianis
NEW YORK (Dow Jones)- Alydaar Software Corp. (ALYD) shares were up 13%
Monday following a newspaper story that quoted positive comments about
the company from a Banque Privee Edmond de Rothschild S.A. research
report.
Tom Dudchik, senior vice president at Alydaar, attributed the stock's
rise to the story, which was published in The Charlotte Observer and
posted on the Internet. It quotes Rothschild analyst Sean Kelly as
saying he expects Alydaar's revenue to grow 25% a quarter over the
next couple of years, and profits to grow even faster.
Kelly said he estimated Alydaar would earn 16 cents a share in its
second quarter, according to the news report. That would compare with
a year-earlier loss of 16 cents. For the year, he estimated Alydaar
would earn $1.28 a share on revenue of $58 million, compared to a
year-earlier loss of 51 cents on revenue of $10.7 million.
Dudchik said Alydaar's guidance to the Street for 1998 has been
earnings of $1.25 to $1.50 on revenue of $55 million to $65 million.
The company puts second-quarter revenue at around $10 million,
compared with $2.1 million a year earlier.
The West Charlotte, N.C., company focuses on remediating Cobol
software so that it's year 2000-compliant - that is, able to handle
dates beyond Dec. 31, 1999. Clients send their software code to
Alydaar, which then processes and tests it for Year 2000-readiness.
The company plans to expand its services beyond Year 2000-related
business, Dudchik said, and is looking at acquisitions of systems
integrators.
Rothschild's Kelly said he sees the stock trading at 45 by the end of
the year, according to the newspaper story.
That would be a sprint: Alydaar's share price in recent weeks has
huddled around its 52-week low of 11 3/8, set June 15 It's held down
by lower-than-expected demand for its Year 2000 services, according to
Derby Securities Inc. analyst Otto Grote.
"They expected quarter after quarter a major pickup in demand as we
approach this critical year 1999," he said. "The company feels there's
going to be a panic and the panic is being postponed."
In Nasdaq trading, the stock was recently up 1 5/8, or 13%, at 14 1/8,
on volume of 321,300 shares, more than twice the daily average of
131,200.
Maria V. Georgianis; 201-938-5244
{END} DOW JONES N~WS 07-06-98
02:37 PM
|
