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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (35337)	9/19/2000 12:49:47 AM
From: Softechie	Respond to of 57584

Bad opinion on ALLR from Briefing.com: Allaire (ALLR) 17 1/2: As Briefing.com surmised on Friday, important news was forthcoming from Allaire. The basis for our assumption was that ALLR had reportedly cancelled a one-on-one meeting with Needham & Co. It also caught our eye that the stock plunged to a new 52-week low on heavy volume. This morning, Allaire did deliver some important news and it was not the kind of news investors like to hear to start their week as Allaire pre-announced an earnings shortfall for Q3, saying it expects to report a net loss in the range of $0.05 to $0.20 per share on anticipated revenues between $28 mln to $32 mln. According to First Call, analysts had been expecting ALLR to post a profit of $0.07 per share. Several factors were to blame. First, ALLR's efforts to provide a multi-product offering proved to be too distracting as they had a negative impact on the sales and marketing efforts supporting its ColdFusion product. Secondly, it is taking longer than expected to close on sales of its core products which should result in a revenue shortfall for the month of September. Finally, a number of Allaire Spectra deals anticipated to close in Q3 have now moved into future quarters. To address its shortcomings, Allaire said it was going to be bolstering its demand generation programs through increased marketing initiatives. It will also refine its customer qualification and sales efforts for Allaire Spectra. While these are positive actions, they are being muted somewhat by the expectation that profit margins could be compressed as Allaire spends more to preserve its market share. As one would expect, Allaire's stock is trading lower in pre-market action. It is currently indicated at 14 1/4. Regular readers will recall that we cautioned against buying the stock on Friday as the severity of the stock's slide ahead of its earnings report was a red flag. In the wake of today's news, we feel compelled to reiterate that cautious stance. -- Patrick J. O'Hare, Briefing.com