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Technology Stocks : Vignette Corporation (VIGN) -- Ignore unavailable to you. Want to Upgrade?

To: Jimbobwae who wrote (567)	5/9/2001 11:40:01 AM
From: MGV	Read Replies (1) \| Respond to of 628

The incremental news flow for this company continues to be positive. This "punt" on a new HQ is reassuring insofar as it suggests they are serious about getting more of the top line down to the bottom line. There were signs in the 2nd half last year and early this year that the company had lost its focus. It was ceding content management deals to smaller competitors. It was not making progress on margins. There were whispers about the effectiveness of the marketing and sales leaders. When this company guided to a sequential decline of about 20% in January, they were the lone ranger on bad news. This led to speculation that they were having company specific problems. In hindsight, with the recent guide downs by ARTG, BVSN, and IWOV, VIGN's guidance in January was more prudent than a company red flag. From that time, they have made efforts to strengthen sales and senior management capacity, refocus on their core competence, target IWOV, and improve margins. They have more customers than anyone in their central space and they have more revenue. with these developments I think they are improving their position significantly. They need to continue to run and make rapid progress on the earnings front. Near term, industry fundamentals remain rough. The game is to emerge stronger after getting through this rough patch.