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Technology Stocks : Purchasepro.com Inc. (PPRO) -- Ignore unavailable to you. Want to Upgrade?

To: VIPER85730 who wrote (564)	4/19/2001 9:59:01 PM
From: VIPER85730	Read Replies (2) \| Respond to of 748

From RB.... Lehman's PurchasePro Earnings Preview (PPRO, 2 Buy, $4.55) PurchasePro expects to announce its Q1 results next week. Despite some impressive customer wins over the past two weeks, this stock sits at $4.55, down 35% since the beginning of April and 62% since the beginning of March. In our opinion, this decline stems in part from PurchasePro`s Form 10K and investors` dismay at the way management handled the disclosure of some of the information contained in that document.This is unfortunate given that we see a number of positive developments in PurchasePro`s business. To begin to redeem itself, we think PurchasePro needs to meet our estimates for the quarter, disclose any software exchanges, partner revenue or similar transactions on the earnings call and, perhaps most importantly, announce a new CFO. We think there is a good chance of these things occurring next week. PurchasePro currently trades at a mere 8x 2001 earnings. Quarterly Results We expect PurchasePro to meet our top line estimate of $42 million and EPS estimate of 10 cents per share. We project PurchasePros revenue will grow 25% sequentially, from $34 million to $42 million. Not bad considering that Ariba`s revenue declined 47% sequentially and Commerce One`s revenue declined 11% sequentially this quarter. Our revenue estimate for PurchasePro breaks down as follows: Things we will be looking for on the call include the following: * Guidance: An important aspect of the conference call will be the companys guidance for the remainder of the year. As the AOL relationship continue to ramp, we expect PurchasePros revenue to ramp too. We expect PurchasePro to generate $221 million for FY2001 and $387 million in FY2002. * CFO Status: We expect PurchasePro to provide an update on their search for a new CFO and think there is a reasonable chance that a new CFO will be announced on the call. On last quarters call, Jim Clough stated that he expected Q4 call would be his last as PurchasePros CFO. PurchasePro would benefit significantly from the addition of a world class CFO. * Barter Transactions: PurchasePro`s stock price has taken a significant hit due to the non-cash transactions it entered into with a number of software companies in 2000. We believe PurchasePro has recognized that these types of transactions will do more harm than good. We expect PurchasePro`s management to address this issue directly on the call and expect that there will be no additional exchanges of software in Q1.