Important Yahoo Thread Post:
I worked for SE and its previous incarnations for 13 years. So, what I have to say has some basis in real experience.
1) This is absolutely a first rate business with world-class senior management.
2) SE's product lines are generally world-class and the leader in their market spaces. What the conference call said is true; if they have any marginal revenue shortfall, it was in the Xcellenet product line, which perforce is being repositioned and reworked somewhat.
3) SE has a blue-chip customer base--the best in the business and they continue to close significant new license revenue in markets that matter.
4) The only--and I mean ONLY--criticism one might raise against the company is that it has artifically "throttled" its growth rate since 1996. It could easily grow at 40-50% annually instead of 30%+. It's senior management, however, is 110% committed to a consistent business plan, consistently executed, and in a way that can evolve their workforce and products without short term disruption. This is why you see their earnings come in like Swiss clockwork at 30% mas o menos 1 percent or so. I would like to know how many high tech companies get anywhere close to this level of consistency--or companies in general that are this consistent.
5) I have seen a couple of comments about Warner Blow. Let me tell you, Warner is absolutely one of the most experienced, intelligent, and respected business executives out there. So is the rest of SE senior management for that matter. The guy has been with Sterling Williams for many years and has been in EC well before most of the people who post stuff on this message board could say the word "earnings".
6) All this BS I read about increased competition in the EC market ignores the fact that SE is right on top of any EC initiative that has any significant profit potential. And any upstart is going to have a huge barrier to entry in SE's core business. This is why you see Harbinger struggling and why SE never got into the "virtual business" which is Amazon.com.
All this said, the company does need to deal with its volatile stock price. I imagine this will be a major issue in the next corporate meeting, on March 4.
Poster: ToddNCompany |
