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Technology Stocks : SSA (SSAX) BPCS/Client Server -- Ignore unavailable to you. Want to Upgrade?

To: James B. Barnes who wrote (346)	12/9/1997 11:49:00 PM
From: Donald A Dahl	Read Replies (1) \| Respond to of 915

SSAX interview posted at 2005 this evening By Susan Nadeau CHICAGO, Dec 9 (Reuters) - System Software Associates Inc said Tuesday that higher-than-expected services revenues, which offset lower-than-expected licensing revenues from Asia in its fiscal fourth quarter, are expected to continue strong in the new fiscal year. In an interview, Chairman and Chief Executive Roger Covey said that Asia typically accounts for about 20 percent of revenues but was less during the fiscal fourth quarter. "For the year as a whole our software license revenue was up 34 percent. It wasn't up as much in total as we would have liked for the fourth quarter ... but we made it up in service revenue," he said. "I don't think people should take what happened in Asia in the fourth quarter and extrapolate it to North America and Europe, or even to Japan or China" where licensing revenues were solid, Covey said. System Software, which provides enterprise resource planning (ERP) software and services, on Monday reported fiscal fourth quarter earnings of $0.01 a share after charges, versus a loss of $0.13. Some analysts said the company did not meet estimates and cited the ongoing turmoil in Asia. "We don't think the problems in the Asian economies such as Korea are going to be solved in the short term," Covey said. "However, the rest of our business continues to be strong -- including other markets in Asia, including China and Japan." Shares of System Software lost more than 36 percent of their value, dropping 5-9/16 to 9-11/16. Covey declined to comment on earnings estimates, but said the company was "delighted" with the quarter. "We thought actually we had a really good quarter and sort of got blindsided by all this today," he said. Oracle Corp shares fell nearly 30 percent as a result of missed earnings estimates due to troubles in Asia, and some of System Software's stock price decline was attributed to the Oracle slide. But Covey said despite the fact that System Software products run with Oracle databases, System Software is not necessarily affected. "I'm not sure Wall Street is making that linkage appropriately," Covey said. Covey said the ERP market grew 30 percent annually, while System Software's licensing revenues grew by about 34 percent, showing a rise in market share. He pegged the company's market share at about nine to 10 percent. "It's our plan to continue to grow faster than the market" on an annual basis, Covey said, adding the target is "absolutely, completely feasible". Covey also noted that Casey Cowell, founder of U.S. Robotics, which merged with 3Com Corp , has joined System Software's board.