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Gold/Mining/Energy : Descartes Systems, DSG/TSE -- Ignore unavailable to you. Want to Upgrade?

To: Robert who wrote (143)	3/22/2000 1:19:00 AM
From: Jason Marcotte	Read Replies (1) \| Respond to of 157

I think that you fail to fully appreciate the nature of Descartes' revenue stream. When Descartes signs a deal they usually will receive a small 'up front' fee. But the real money comes over the course of many months (and years??) as they receive license fees from the companies that use their products. So, as the use of the Web grows, and as these companies grow, so too does Descartes' revenue. I often hear that Descartes is trading at enormous multiples to its sales, however people that say this are comparing todays share price to past revenue, when in reality it is more appropriate to compare the share price to future sales, which are certain to grow significantly due to the number of deals they have signed in the past 6 months alone. Jason