GEAC.....Canadian best kept secret Message Board

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Gold/Mining/Energy : GEAC.....Canadian best kept secret

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To: eric r. f. who wrote (620)	2/15/1999 8:33:00 PM
From: Serge Collins	Read Replies (1) of 1571

Geac has lost more than 50 % of its value over the last five weeks. Many people had expected a tough environment for software companies this year related to the Y2K glitch. Geac will have higher sequential revenues in Q3, but lower earnings as it expenses additional costs associated with helping clients integrate new software this year. They will still have a substantial profit in Q3, but how profitable will they be as we progress through the year? One positive is that they continue to generate good cash. In spite of re-paying $38 million in LTD in the quarter, they increased their cash position from $185 million to $230 million. The big problem as far as software integration seems to be related more to their clients older systems than to Geac specifically. Geac's software uses 4 digit year codes, but it appears that some clients might have problems when integrating this software with software from other parties or older systems. This will bring on additional costs but I don't think its an altogether bad thing for Geac in the long-run as it could help Geac develop a good reputation as a company that goes the extra mile to help a client.

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