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Technology Stocks : Sterling Commerce (SE)

SE 142.31

-8.3%

3:59 PM EST

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To: Panita who wrote ()	2/6/1999 6:08:00 PM
From: kendall harmon	of 341

Bloomberg story on SE Dallas, Feb. 5 (Bloomberg) -- Sterling Commerce shares fell 23.4 percent after the electronic-commerce software company warned that its 1999 sales will slow and after its fiscal first- quarter revenue fell short of some estimates. Sterling Commerce shares fell 9 15/16 to 32 1/2 in trading of 11.1 million, more than 15 times its three-month daily average. The company reported its earnings for the quarter ended Dec. 31 late yesterday. Company officials weren't available to comment. Sterling Commerce, whose software helps companies conduct business over computer networks, told analysts that its 1999 sales would slow to 35 percent to 37 percent, rather than the 37 percent to 39 percent range. The company's sales are slowing because of increased competition from new rivals and as some clients delay projects because of spending on fixing the Year 2000 glitch, which may cause computers to read the year ''2000'' as ''1900.'' ''It will be a tough year for the space,'' said BancBoston Robertson Stephens analyst Richard Juarez, who said Sterling Commerce's fiscal first-quarter revenue fell short of his estimate by $3.5 million. Juarez said he cut his rating last year to long-term ''attractive'' because he was concerned then about slowing sales. ''There are a slew of new competitors such as Commerce One'' and others. The Dallas-based company's rating was cut by several analysts. Warburg Dillon Read analyst Gibbs Moody downgraded his ''buy'' rating to ''hold.'' Robinson-Humphrey analyst Brent Wouters cut his rating to short-term ''market perform'' from short-term ''buy.'' The company said its fiscal first-quarter sales rose 32 percent to $140.8 million from $106.3 million in the year- earlier quarter. Net income rose 32 percent to $31.9 million, or 33 cents a share, from $24.2 million, or 26 cents.

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