Silicon Investor (SI) -- The First Internet Community

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 : Software.com, Inc. (SWCM) -- Ignore unavailable to you. Want to Upgrade?

To: Scarecrow who wrote (41)	8/17/1999 1:30:00 PM
From: edwin mok	Respond to of 142

I like this company a lot especially with their deep market pentration. Now that they have a big account, things sure looks good. -Edwin

To: Scarecrow who wrote (41)	8/17/1999 5:41:00 PM
From: Rusty Johnson	Read Replies (2) \| Respond to of 142

A Deal Struck With Sprint PCS Helps Software.com Shares Rise By LISA BRANSTEN THE WALL STREET JOURNAL INTERACTIVE EDITION Enthusiasm for the future of wireless messaging technologies helped send shares of Software.com higher Tuesday. In Nasdaq Stock Market trading, shares of the company rose 8 3/4, or 29%, to close at 39, after the Santa Barbara, Calif., company announced it had signed a deal to license its Internet-communication software to Sprint PCS Group. Meanwhile, technology shares advanced. The Nasdaq Composite Index advanced 25.95 to close at 2671.23 and Morgan Stanley's high-tech 35 index rose 1.43 to 1167.82. The Dow Jones Internet Index gained 8.66 to 212.79. Software.com, based in Santa Barbara, Calif., makes software that manages messaging services such as e-mail for Internet-service providers and Web sites. The company manages 47 million mailboxes for such partners as Excite At Home and AT&T's WorldNet Internet service. Although the company, which went public at the end of June, has said for some time that it intended to enter the wireless arena, the Sprint deal is its first deal with a wireless carrier. John Ingalls, Software.com's chief financial officer, said the deal shouldn't affect analysts' earnings expectations since the agreement was inked last spring and the company gave analysts guidance to include the projected revenues in their earnings models. Terms of the contract weren't disclosed, but Mr. Ingalls said it was a multiyear, multimillion-dollar deal that should generate revenue for the next 10 quarters. Banc Boston Robertson Stephens, the only firm that has given an estimate to First Call/Thomson Financial, forecasts that Software.com will have sales of $37.5 million this year and a loss of 41 cents a share. For next year, Robertson expects revenues of $55.9 million with a loss of 25 cents a share. Kirsten Campbell, an analyst at Merrill Lynch & Co., said revenues from the deal had been factored into her estimates for the company but added that the deal was important because "it validates their product to have a big customer like Sprint using it." Mr. Ingalls said he expects wireless deals to make up a "substantial" portion of the company's revenues by next year. "This is very much a repeatable solution and having sold it to Sprint we hope to sell it to other wireless telephone companies," he said. He added that the stock may have moved Tuesday because investors see that wireless messaging is a technology that is gaining ground quickly. "Maybe it surprised people that this is not a year from now," he said. "We're very much here today with a technology that works today." ... --Paula L. Stepankowsky of Dow Jones Newswires contributed to this article.

To: Scarecrow who wrote (41)	8/19/1999 12:49:00 PM
From: Mark Oliver	Respond to of 142

The news of the Sprint deal brought my attention. I've been trying to assemble an understanding of the key new markets for enabling cell phones and PDA's to become internet devices. I think we shall see explosive growth in this market. I believe the use of buddy lists and Short Message Service will be a very useful tool and the company to provide it will be a winner. Maybe this announcement with Sprint is something special? It is interesting to see the rapid adoption of the WAP forum standard by nearly all companies in the cell phone market. WAP sets a standard by which devices of limited function can become useful internet tools. We've also seen 3Com adopt it for their Palm Pilot and Microsoft joined as well. It looks like a certain standard and we should see all new cell phones shipped next year being WAP enabled. What I have not been able to determine yet is whether Software.com is falling into the standards world of WAP? Most of these cell phones will have specialty micro-browsers and they will have e-mail functions. I am wondering exactly how this fits with what SWCM is doing. So much to learn. Anyway, I've started a thread called "Access Anywhere, Anytime. Cell Phones/PDA's join the Net". I would really appreciate any advice on how this end of Software.com's business may unfold. Subject 29380 By the way, I did a chart comparison of swcm and phcm, and found they have moved very much in step on a 100 day basis. PHCM is Phone.com, again a recent IPO and the company behind the WAP forum and a leading supplier of software on the server side for delivering data to cell phones as well as a major player in the micro-browser market. Regards, Mark