Sterling Commerce (SE) Message Board

STOCKTALK

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 155.13

+3.4%

Nov 10 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bob Howarth who wrote (171)	2/23/1999 11:32:00 AM
From: Stocker	Read Replies (1) of 341

From theStreet.com.... Robbie Stephens Conference: Sterling Gets Some Respect By TSC Staff 2/23/99 10:10 AM ET SAN FRANCISCO -- E-commerce software company Sterling Commerce (SE:NYSE) looks sterling to most investors at the BancBoston Robertson Stephens Tech'99 Conference, nearly filling a Ritz-Carlton ballroom at its presentation Monday. Investors eager to participate in the Internet craze, but not so eager to pay the lofty valuations of something like an Amazon.com (AMZN:Nasdaq), are finding Sterling particularly attractive because its stock tumbled earlier this month to the lowest level since October. The stock drop was due to weaker-than-expected software growth in the first quarter. The idea of an Internet stock that may be reasonably valued proved tempting to many investors. "It's an interesting company," said one fund manager who doesn't currently hold the stock, but who came to see if it might be worthwhile to grab some. What's so interesting? Sterling CFO Steven Shiflet said he's comfortable with Wall Street estimates of 35% to 36% revenue growth this year. Shiflet expects Sterling will maintain its 33% to 34% operating margins this year. He also emphasized huge growth in markets outside the U.S., saying that 21% of last year's revenue came from international sales. But there is one point that could tarnish Sterling's bullishness, some investors cautioned. "The company has a very high amount of capitalization of development costs," one Midwest-based fund manager said. Rather than expensing software development costs as many software companies do, Sterling accounts for the costs as an asset on the balance sheet and aggressively amortizes them over time. That helps keep margins high and supports earnings, fund managers said. By Medora Lee

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next