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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (38096)	1/17/2001 11:46:11 PM
From: Rick	Read Replies (1) \| Respond to of 54805

SSB on ITWO: "Total revenue increased 115.6% over prior year (18.3%sequentially) to $377.9 million; exceeding our $351.3 revenue estimate by 7.6%. Software license revenue, recurring revenue, services and maintenance contributed 61.3%, 3.2%, 22.9% and 12.6%, respectively. Software License Revenue grew 109.6% over the prior year (21.6%sequentially) to $231.7 million; exceeding our $216.4 million estimate. Upside resulted from 122 new enterprise deals versus our estimate of 108 deals. ITWO employed 580 direct sales reps versus our estimate of 602. The direct sales rep count more than double from a year ago. The number of total direct sales reps was lower than anticipated. We believe this was due to the fourth quarter being a seasonally light quarter for hiring. We estimate the hiring rate will accelerate in the first quarter from 36 new reps this quarter to 40-50 in 1Q01. Gross Profit grew 109.2% to $281 million; exceeding our estimate by 9.3%. Additionally, gross margin increased 130bp from 3Q00 and was 120bp above our estimate. We originally expected the increased contribution from IBM to have a more negative effect on gross margin. IBM contributed approximately $120 million in revenue during 2000." - Fred