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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: HandsOn who wrote (23709)	10/22/1999 1:40:00 PM
From: AlienTech	Respond to of 43080

>>Anybody getting some PVSW here under 12. << I already gave at the office.. What more do you want? *DJ Needham Cuts Pervasive Software To Hold From Buy (END) DOW JONES NEWS 10-22-99 01:10 PM =DJ Pervasive Software Dn -3: Losses Seen In Next 4 Quarters Pervasive Software told analysts its Tango2000 product is showing promise and the added spending will be used to boost its sales, marketing and R&D efforts and promote the Web-based product that is used to make and deploy database-drive applications. Hoak Breedlove's Payne said the surprise boost in spending will leave the company in a break-even or loss condition for the next four quarters. "While this level of re-investments is typical of other e-commerce infrastructure companies that have recently had IPOs, it is an unprecedented change in business model for a previously profitable company," Payne wrote in a note Friday. Although investors will be watching to see if the company can execute on its new plan, Payne said he believes the changes will spur revenue growth in the long term. "Their feedback from the market is the excitement is there," Payne said. "They just need to make more people aware of it." Robertson Stephens analyst Senk apparently disagrees. In his note Friday, he wrote: "We do not believe that significant investment around Tango is the right long-term strategy for the company to adopt in order to reaccelerate top-line growth." Revenue from Tango accounted for less than 5% of total revenue in the first quarter, flat from the previous quarter, Senk wrote. Senk lowered his second-quarter bottom-line estimate from a 12-cent profit to a 3-cent loss. He also lowered his fiscal 2000 estimate to a loss of 28 cents a share on revenue of $76.7 million, down from a profit of 51 cents on revenue of $83.45 million. Including amortization, Payne also put the second-quarter loss at 3 cents a share, but sees a fiscal year loss of just 6 cents a share on $82 million in revenue. Pervasive officials weren't immediately available to comment. -Marcelo Prince; Dow Jones Newswires; 201-938-5244 (END) DOW JONES NEWS 10-22-99 11:27 AM