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Technology Stocks : Intersolv News -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (680)	3/4/1998 3:14:00 PM
From: gerald tseng	Respond to of 1069

I guess this is from yesterday's CC: PHILADELPHIA, March 2 (Reuters) - Intersolv Inc could see up to $0.05 per share in earnings accretion next fiscal year from its purchase of the privately held the British company, SQL Software, Chief Executive Gary Greenfield said on Monday. In an interview, Greenfield said the deal would allow his Rockville, Md.-based software firm to take a strategic position in the fast-growing software lifecycle management segment of the automated software quality solutions market. He also said he was comfortable with Wall Street earnings estimates of $0.31 per share in the fourth quarter ending April 30, despite the risk of a slightly dilutive merger impact. Intersolv said earlier on Monday that it agreed to buy SQL for roughly 1.3 million of its own shares, worth about $20 million. Greenfield said the deal would be "neutral to slightly dilutive" to fourth-quarter earnings and "neutral to accretive" moving forward from the start of fiscal 1999, on May 1. "We're only talking about a penny or two dilutive," the chief executive told Reuters. "Next year, we'd be taking a look at someplace between neutral and a nickel accretive. "He said he was comfortable with a fiscal 1998 earnings consensus view of $0.71 per share. "There may be a penny or two effect from this acquisition but we've given a range of 75-85 cents. So 71 cents, even with a penny or two, is still at the low end," Greenfield added. The SQL purchase adds a fourth dimension -- software lifecycle mangement -- to Intersolv's automated software quality business. Up to now Intersolv has focused on three segments: software configuration management, issue management and automated software testing. "The question has been: who's going to stake out this high end of the software market?" Greenfield said. "With this, as the market would expect the market leader to do, we are saying that we are staking it out as our own," he said. Greenfield said the acquisition gave Intersolv a 29 percent share of the automated software quality marketplace as a whole. He said his company planned to push that to 35-40 percent as rampant growth moved the market toward the $1 billion mark by the beginning of the next century. Intersolv had total annual revenues of just over $160 million a year ago. Meanwhile, SQL represents about $9 million of a software lifecycle management business estimated at $50-75 million. But Greenfield said the market could grow to $150-200 million by the year 2000, adding that he hoped Intersolv's software lifecycle management business would be "approaching the $35-50 million range in that timeframe."

To: Bosco who wrote (680)	3/5/1998 5:06:00 PM
From: Arrow Hd.	Read Replies (1) \| Respond to of 1069

I agree. Its in the doldrums but I dont see any negative news at this point. The acquisition has been explained, they basically write the entire deal off, they said they will still make the quarter even with the write-off, and it is accretive looking into FY99 and they have made positive forward looking statements. The brokerage firm CC spoke of a number of Y2K deals and so on. Though I agree there is no wholesale accumulation going on the associates of mine who manage money have been buying this up the last few days. Personally, I picked up another block myself and the executions all came back as 1,000 here, 1500 there, and so on so it may be hard to determine accumulation from distribution. Sometimes my "broker" works it in that way, sometimes the dealer wont show it, etc. I dont know always what happens. I just have a sense that we are in the eye of a storm here with ISLI.