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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: PMS Witch who wrote (35283)	12/10/1999 10:43:00 AM
From: John F. Dowd	Respond to of 74651

To PMSW and All: Lest ye worry about how MSFT is doing in the enterprise server business look at how this company is doing in supporting critical hosting on web sites for MSFT servers. DALLAS--(BUSINESS WIRE)--Nov. 22, 1999--Data Return Corporation (Nasdaq: DRTN.O) today reported results for the second fiscal quarter and six months ended September 30, 1999. Total revenue for the second fiscal quarter of 2000 was $1.7 million, a 372% increase over $366,000 in the comparable quarter of fiscal 1999, and a 41% increase from $1.2 million in the first fiscal quarter of 2000. Revenue from new clients accounted for more than 80% of total revenue growth. New Data Return clients added during the second quarter include Pier One Imports, Fossil, Executive Software International, Sensormatic Electronics, Roseart, and Metabolife International and others. Existing customers who expanded their service relationships with the Company include First USA Bank, Berlitz Languages and KPMG. "Our revenue growth this quarter is a reflection of the tremendous demand for high quality advanced hosting services for mission critical Internet operations, and our ability to meet the needs of the enterprise for managed services on the Microsoft platform," said Sunny Vanderbeck, Chairman and Chief Executive Officer. "We added more than 130 enterprise customers and "dot.com" companies bringing our total customer base to almost 800. Based on our client growth rate and our increasing visibility in the managed hosting space, we more than doubled our staffing in the second quarter to further enhance customer support and launch new managed hosting services for Microsoft Exchange." Second quarter EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) was negative $1.7 million, or $0.06 per share, as compared to negative $226,000, or $0.01 per share, in the prior year period. The Company reported a net loss of $1.9 million, or $0.07 per share in the quarter ended September 30, 1999, compared to a loss of $337,000, or $0.02 per share, reported in the second fiscal quarter of 1999. On November 4, 1999, Data Return completed its initial public offering of 6.25 million shares of common stock and the sale of an additional 937,500 shares of its common stock in the exercise of the underwriters' over-allotment option, at the public offering price of $13.00 per share. "Each of our strategic partners, Microsoft, Compaq Computer, and Level 3 Communications, made significant financial investments in the Company through purchases of the Company's common stock totaling $13 million," Mr. Vanderbeck said. "This demonstrates that these leading providers of software, server hardware, and IP networking services share our confidence in Data Return's business model and market opportunity. We are pleased to count these companies not only as our partners, but also as our shareholders." Data Return's strategic partnerships with Microsoft, Compaq, and Level 3 provide Data Return with a leveraged business model that creates competitive advantage in each of the following areas: -- Extensive Data Center and Network Infrastructure. Through its alliance with Level 3, the Company is provided with access to Level 3's global IP network and over 25 existing Level 3 gateways in the U.S. with significant planned expansion over the next 24 months. Data Return is also partnering with Level 3's sales force to generate new business opportunities. -- Joint Development with Microsoft Corporation. The Microsoft investment was based in part upon Data Return's development of installation tools for Microsoft Application Service Providers and Microsoft customers. This partnership will provide both Data Return and Microsoft better access to expertise from both companies in the large scale deployment and management of Microsoft BackOffice products in a hosted environment. Data Return's sole focus on the Microsoft Platform allows Data Return to provide customers more expertise in deploying and managing scalable, high-performance and high-availability hosted applications. JFD

To: PMS Witch who wrote (35283)	12/13/1999 8:45:00 PM
From: Valley Girl	Read Replies (1) \| Respond to of 74651

PW and all (off-topic): Here's a fact that might amuse you: as of today's close, a day when SEBL rocketed up to close over $88 while RHAT sank 10% to close at $246, RHAT's market cap is still a tad larger than SEBL's (16.9 billion versus 16.3). Here's a question: if you were offered either side of the deal in a swap, which side would you rather have? I remember when I was in school we studied the bubble in the Japanese market, which, unlike today's situation in the USA, was helped along by fantastic inflation in land values. There was a point in time when the theoretical market value for all the land in and around Tokyo was worth more than the entire state of California. Bet your cab driver and the guy at the seven-eleven would know which side of that deal to take! Grinning wickedly, VG