Other highlights:
>Deferred revenues from $59M to $67M
>Cashflow increased to $221M
>NT Business growing faster than UNIX business
>Web-focused, e-business is key strategic goal
>Business model accomodates shifts in platforms and platform flexibility
>Americas 65%, Europe/ME 30%, Asia 5%
>Key markets are ISVs and Embedded systems.
ISVs represent 60% of business- buy to accerate time to market, quality and transition to the web. These customers spend less than 5% of the software budget on RATL. Key customers include: Lucent, Siemans, Xerox, GTE, Sony, Compaq, Nokia, Fujitsu.
IS Market- 40%. Gaining from "e-business" (Levy's new favorite word). As "e-business" continues to grow, RATL is well positioned to be a beneficiary. Major customers include: IBM, Andersen Consulting, Fidelity, Merrill Lynch, Chase, EDS, MCI WorldCom, Bell Atlantic, Citigroup, Aetna, T Rowe Price, Morgan Stanley.
10 largest customers represent 20% of business
50 largest customers represent 45% of business
100 largest customers represent 60% of business
Record orders of over 500K (15)
Record orders of over 150K(100)
2000 orders of 10K-99K
11,000 transactions
More big deals, broadening of overall market, broadest impact was in 99K size deals.
Performance Studio and Rational Team Test appear to be doing quite well. He is clearly positioning against Mercury.
Rational strategic mission is bigger than single products, automating entire life cycle. "Rational offers a unique and comprehensive solutions that includes best in class/industry leading products"
Most important product release cycle possibly ever- clearly referring to the suites.
"Rational is hitting strides with the right strategy"
Wendell Laidley, CSFB: "Another terrific quarter, congrats"
Questions:
Discuss business over the web?
Sales force coming together?
Break out by Product?
Discuss business over the web?
Q over Q, web business up 100%, fundamental phenomenom in December quarter that every business critical application involves the web. web is "more than anything else, accelerating companies business"
Sales Force?
Unforced turnover was less than 3%
275 front-lined quota assigned sales staff
1100 people in field organization
Product Breakdown?
Large % involving product breakdowns, Less focused on point products, More focused on a solution
Sheila Innis: H&Q
"congratulations again on a terrific quarter"
Breakout upside on product line that allowed you to "beat the numbers so handily"?
New Products in incremental markets?
Breakout products- "customers want multiple products together", accelerated by big/medium deals with "one stop shopping" to automate business processes. To further support customers, they are building a "product suite"- a key strategic initiative. (no date provided)
Sales cycle is shortening because of web, small increase in quota
Incremental markets?
Their markets are underpenetrated- expect to increase penetration by 5X to 10X
Size and stature as a leader is helping front line sales staff
Sophia Chang-
"Very, very nice quarter"
Tired of typing, might post more later. This looks beautiful... |
