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Technology Stocks : FirstWave Technologies (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: Young H. Noh who wrote (1321)	7/19/1999 11:16:00 PM
From: Kimberly Lee	Respond to of 9677

The entire "alliance" with MSFT is worth only $75,000 to $100,000 per Bloomberg, citing renowned analyst Anthony Eligindy's pointed comments. quote.bloomberg.com Firstwave Shares Rise on Microsoft Software Accord (Update2) Firstwave Shares Rise on Microsoft Software Accord (Update2) (Adds analyst, company comment.) Atlanta, July 19 (Bloomberg) -- Shares of Firstwave Technologies Inc., the maker of Internet sales and marketing software, more than quadrupled after Microsoft Corp. agreed to use the company's Netgain Sales product. Atlanta-based Firstwave shares rose 6 3/4 to 8 5/8 in trading of 16 million. The stock, which had a daily three-month trading average of 6,600 shares, was the fifth most-active on U.S. exchanges. The companies didn't disclose financial details. Netgain Sales, which runs on Microsoft's Windows platform, is Internet-based software that enables companies to manage sales and marketing operations. Firstwave said Microsoft will use Netgain Sales for its Embedded Systems Group, with about 100 users. Firstwave said the accord will do more for name recognition than revenue. ''This is not a million-dollar deal by any stretch of the imagination,'' said Stephen Luce, a Firstwave spokesman, ''But it will serve as a great reference for us.'' Some analysts said the agreement didn't justify the jump in Firstwave's share price. ''Firstwave omitted material information from their press release, thereby allowing the public to speculate as to the size of the agreement with Microsoft,'' said Anthony Elgindy, an analyst with Pacific Equity Investigations, adding ''the contract was so insignificant that Microsoft called it negligible.'' $75,000 to $100,000 Agreement Elgindy said Firstwave and Microsoft officials confirmed the agreement is worth $75,000 to $100,000, with additional annual maintenance payments of $18,000. Firstwave Chief Executive Richard Brock said the transaction's financial details weren't disclosed to the public. The Microsoft agreement ''was not a little Mickey Mouse transaction, nor was it a whale,'' said Brock, adding that the release ''was not intended to infer that Microsoft was going to do a master contract with us or something.'' Firstwave, founded in 1984 as Brock International Inc., changed its name to Firstwave in March last year after it modified its focus from a client-server to a Web-based product. The company went public in 1993. Firstwave had sales of $14.5 million last year. It has worked with over 20,000 installed users at 200 companies in more than 20 countries. Microsoft shares fell 1 1/16 to 98 3/8. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. Access More Information and Services Above ©1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.