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To: Hans-Erik Eriksson who wrote (2944)7/14/1999 8:21:00 PM
From: William F. Wager, Jr.  Respond to of 3115
 
DJ Rational Software 1Q Net 16c/Diluted Shr Vs 9c

Rational Software Corp. - Cupertino, Calif.
1st Quar June 30:
1999 1998
Revenue $117,423,000 $82,971,000
Net income 14,693,000 8,005,000
Avg shrs (basic) 86,527,000 87,867,000
Avg shrs (diluted) 94,104,000 92,859,000
Shr earns (basic)
Net income .17 .09
Shr earns (diluted)
Net income .16 .09

Rational Software Corp. (RATL) makes and sells software development programs.



To: Hans-Erik Eriksson who wrote (2944)7/14/1999 8:59:00 PM
From: Jay M. Harris  Read Replies (1) | Respond to of 3115
 
Hans; one troubling number in the report is the level of deferred revenue growth on the balance sheet being flat at 76 mil from the prior quarter. This may reflect seasonal weakness,however, I would prefer rational grow this line item on the balance sheet (a rule from MSFT's playbook) rather than show upside to "lock in the linearity of growth observed in your note. All in all, a solid quarter...