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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (70605)	11/10/1999 10:29:00 AM
From: Sosmartinov	Read Replies (1) \| Respond to of 120523

CRUS...looks to be getting a tail wind....lottsa upside potntl in this stk....wi upcoming news. Also COVD...knocking on 53 again.

To: kendall harmon who wrote (70605)	11/10/1999 10:31:00 AM
From: Jenna	Respond to of 120523

Posted on WallStreetStand.com this morning at 8:30.. I keep an account with H&Q just for their super stock reports and access to a few IPO shares every once in a while. · SGNT delivers $10 mill and $0.03 vs. $9 mill and breakeven model · Product revenues up 149% y/y and 47% q/q · Hot player in a hot space looks significantly undervalued against peers · Full platform benefits drive balanced repeat and new customer business · Enthusiastically reiterate BUY rating on strong results and current valuation Summary. Sagent produced another outstanding quarter, its third very strong reported period as a public firm. The company is clearly a hot player in a hot eBusiness space, one where recently issued IPO companies are being assigned forward revenue multiples in the 40-50 range, while Sagent trades at less than 4 times our calendar 2000 estimates. We believe investors will recognize this disparit y, and with even a modest multiple expansion, the stock would be trading at several times its current levels. The company's strength is being validated by higher average selling prices, existing customer re-order rates, new product introductions, and an improving balance sheet—in three quarters, DSO levels have dropped from 93 days to 62 days in the current period. Sagent is also in front of two key product cycles—a new packaged analytical application for the telco industry, and the release of its data load server on the Sun Solaris platform, the company's first Unix port. We are raising our estimates for the December quarter, from September Quarter Results Look Extremely Strong Across the Board. The quarterly results show strength in all areas of the business. Product revenues, the best indicator of fundamental demand in the business, showed outstanding progress, growing 149% year over year to $7.3 million, which is a 47% increase over the June quarter. Orders from existing customers accounted for about 50% of the revenue, in our view an excellent indicator of customer satisfaction. Existing customers placing significant re-orders in the quarter included Morgan Grenfell Asset Management and Asahi Brewery in Japan. 45 new customers were signed in the quarter, including drugstore.com, Boeing Employee's Credit Union, Johnson & Johnson, JD Powers & Associates, and PSINet. Channels-based revenue, which includes international distributors, resellers, and OEMs, accounted for 41% of revenues, up from 33% in the prior quarter. Based on the results from the quarter, and the current market capitalization gap between Sagent and companies sharing similar growth characteristics and prospects, we enthusiastically reiterate our BUY rating on the company's shares at current levels. marketgems.com