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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: Connor26 who wrote (72487)	11/20/1999 8:55:00 AM
From: kendall harmon	Respond to of 120523

PRSF--DLJ sets 125 target <<PORTAL SOFTWARE (PRSF: $92: B)+* DLJ FY 00E ($0.24); FY01E ($0.08) DLJ Susan Passoni (212) 892-5496 Hat Trick and More! Another Robust Quarter; Raising Estimates and TP o Portal reported 3Q00 operating loss of $0.02 per share that exceeded Street projections of a loss of $0.11 and compared to a loss of $0.07 last year. o Revenues of $28.1 million also topped our forecast by $4.6 million and rose 288% from $7.2 million in 3Q99. o For FY00, our revenue estimate is now $96.4 million, up from $86.6 million, and we have lowered our loss per share estimates to $0.24 from $0.40. o For FY01, we are raising our revenue estimates to $157.6 million from $138.3 million. Our FY01 loss per share estimate is now $0.08 from our prior estimate of $0.32. o Revenue growth continues to be driven by robust contract momentum, with 30 new customers added in the quarter, for a total in excess of 160 customers. o Portal announced the 2nd largest global ISP, Deutsche Telekom T-Online (with over 3.6 million subscribers) as a new customer. o Gross margins in the quarter were 74.7%, versus 75.4% in 2Q00 and 67.2% in 3Q99. o Portal announced its intention to focus on opportunities in the wireless data arena. Wireless carriers continue to struggle on their efforts to bill for m-commerce (mobile e-commerce), and are eager to bill for customer transactions that are completed over their networks. o Based on its top line growth and strong contract momentum, we believe that the 40% to 50% discount to the Internet Infrastructure Software group (currently at an average of roughly 80 times calendar 2000 revenues) is unwarranted and that the stock should trade at roughly 60 times fiscal 2001E revenues. As such, we are raising our target price to $125 per share from $80. >>