SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Sterling Commerce (SE)
SE 145.38+2.2%9:48 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Resry who wrote (141)2/6/1999 9:39:00 PM
From: Dave Chanoux  Read Replies (1) of 341
 
This smells (pardon the grammar) a lot like Parametric Technology 6-9 months ago. Bob Howarth follows that one too. The analysts' model is simplistic: Revenue is made up of license revenue and service revenue. You have to get the license revenue before you can get the service revenue.

Parametric license revenue stopped growing last year. Total revenue stopped growing 6-9 months later.

But the analogy doesn't work here. Parametric sells to engineering departments of manufacturing companies. The engineers eventually figure it out and don't continue to buy the service. Sterling sells to banks. Bankers are, well you know... They continue to need the service.

The analysts reaction to SE news and the SE share price have followed the same model as Parametric Technology, 6-9 months later. Is their model correct? I doubt it.

Someone else should jump in to keep this discussion alive. I'm going off to listen to the conference call replay if it is still available.

I own the stock.

Regards,

Dave Chanoux
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News