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Technology Stocks : Prophet 21 (PXXI) - Way Undervalued! -- Ignore unavailable to you. Want to Upgrade?

To: Katz R Us who wrote (105)	9/15/1999 12:36:00 AM
From: Dale Stempson	Respond to of 165

BlueStone Capital Partners L.P. Reiterates STRONG BUY Recommendation on Prophet 21, Inc. New York, New York ? August 19, 1999 - Senior Analyst, Steven A. Jaworski of BlueStone Capital Partners L.P., reiterates his investment rating on Prophet 21, Inc. (NASDAQ: PXXI) Analyst?s Summary: Q4 Results Top Estimates on Margin Expansion and Strong Growth in Service Related Revenues. PXXI reported Q4 revenues and net income of $17.2 million and $1.5 million (EPS of $0.39), respectively. This compares with revenues of $11.7 million and net income of $1.9 million (EPS of $.22) in the prior year period. Both revenues and earnings beat our forecast of $16.6 million and $0.34 per share (consensus EPS of $0.35). Prophet 21 Wholesale Product Sales Ramping Ahead of Our Estimates. During Q4, PXXI began aggressively marketing its Prophet 21 Wholesale product for Windows NT, with impressive results. 23 systems were sold in Q4, 51 for entire FY 1999. Wholesale sales exceeded Acclaim sales for the first time. We expect continued margin expansion as revenues related to the Wholesale product and consulting services represent a growing portion of total revenues. Overall gross margins improved to 52% from 48% in Q4 FY98. See margins widening further to 53%-54% during FY2000. We are maintaining our FY2000 estimate of $1.20, which we believe could prove conservative. Ref link: bluestonecapital.com Regards - Dale