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To: techanalyst1 who wrote (494)	3/24/2002 9:31:06 PM
From: MGV	Read Replies (1) \| Respond to of 512

Thanks again for your good summary. Just a couple clarifications. I'm still not clear on how their model differs from other software companies in providing recurring revenue. I understand the maintenance part of service is recurring. Of the 40% or so of service revs., how much is maintenance? How much is consulting? Does their software sales model provide recurring revs? I understand their products are largely split between testing and performance management (newer, faster growing, right?). Do they have a service bureau model for software sales? Do they have a managed services segment? Are their licenses mostly perpetual or do they have a term model too? [Just saw their reference to managed services with the activewatch, activetune, activetest, etc managed services. What part of revs come from this?] The management is 1st rate. Oracle suggested in December that they would grow license revs. at a greater than 75% quarterly sequential rate between their Feb. and May qtrs and be flat year over year. The sell side bought it - most of them anyway. Now ORCL says lic. revs will be down 20-30% y/y. Embarrassing and hard to overlook.