From briefing.com -
BEYOND.COM CORP. (BYND) 22 3/4 +5 5/16. What else can you say but amazing how the award of a purchase agreement which should only have a small impact on the company's earnings projections can affect the performance of its stock. True, this online reseller of computer software, along with Microsoft and Intellisys Technology, did receive a $121 million contract to supply Windows NT, Office Professional, and other enterprise software to 130,000 IRS users nationwide. But is that worth a gain of more than 30% in the company's stock price? It seems that investors are again returning to their state of bullish stupor, willing to buy anything tech related as long as it has a decent story behind it. While we tend to agree that this contract could be worth a modest amount to Beyond.com which currently is on track to generate sales of between $75 million and $80 million in 1999, investors should keep in mind that this contract award is spread out over 65 months and will be shared with two other parties. Thus, assuming that each party receives an equal part of the total contract, the IRS award is worth in total $22.338 million per year or $7.446 million per company per year. Not bad, but less than 10% of the revenues the company is projected to generate in 1999. Accordingly, Credit Suisse First Boston narrowed its projected losses for 1999 by two cents to $3.88 a share, while reducing Beyond.com's projected losses for the two subsequent periods by five and seven cents to $3.13 and $1.54, respectively.
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