Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: seth thomas who wrote (1216)	3/11/1998 10:05:00 AM
From: Trader Dave	Read Replies (1) \| Respond to of 6974

I doubt it will be a problem for sebl. the sebl guys can say "look, we're gonna dump the scopus product, if you buy the sebl; stuff, you'll be fine." I do think there might be problems for scopus. I'll try to get the gartner piece.

To: seth thomas who wrote (1216)	3/11/1998 10:13:00 AM
From: Melissa McAuliffe	Respond to of 6974

In my last message it should have said: <<You're being funny, right?>> If I am trying to be funny I will usually end my statement with a <g> unless it is obviously intended to be funny.

To: seth thomas who wrote (1216)	3/11/1998 10:26:00 AM
From: Mr Logic	Read Replies (1) \| Respond to of 6974

Steven, I wouldn't expect much change in the numbers this Q based on the merger. I'd happily manage the short term situation as the Marketing or Sales VP. And technically, it depends on a lot of factors but is much less of a challenge than say integrating two databases or operating systems. Revenue recognition - absolutely right. They will have to market around this commitment.

To: seth thomas who wrote (1216)	3/11/1998 10:38:00 AM
From: Ed Schultz	Respond to of 6974

>>what impact do you think that will have in this quarter? Very little. Steven, You are obviously totally misguided and one sided. It appears you are short the stock and will do everything to convince others to sell the stock. I for one like to look at things objectively and not subjectively. The bottom line is what matters. Or, as some people like to say, show me the numbers. And the numbers for SEBL are simply outstanding. Not even you can argue that they are growing at 40+% per year! The reason they bought SCOP was not to integrate products but to expand their marketing base. This can only help the bottom line! Imagine if you will, that SEBL completely dumps the SCOP product line and sells its own. Granted, they might lose some business, but they will also win a great deal. This in turn will bring in more revenue which will allow them to grow at CONSIDERABLY better than 40+%. Another reason they might be willing to buy SCOP is for the human resources. Trying to fill high tech jobs today is very difficult. What if they got all the SCOP engineers to drop what they are doing and work on SEBL only products. This would only increase the rate of innovation and make them considerably more competitive in the market place. Hence, with better products and a larger market share, this company should be able to grow at 80+% for the next few years! Regardless of how YOU look at it or what your opinion is of the CEO, currently the numbers speak for themselves. The CEO must obviously know what he is doing as he has been able to have fanatastic growth over the past couple of years. Give him credit where it is due that he knows very well what he is doing. Personally, I look for this stock to double within a year! Ed

To: seth thomas who wrote (1216)	3/11/1998 11:47:00 AM
From: Melissa McAuliffe	Read Replies (1) \| Respond to of 6974

Once again I find myself compelled to jump in here. << That has HUGE impact on recognizable revenue because that would be a deliverable. No revenue recognized until it's delivered. And since SEBL has little or no professional services org, they can't slide revenue to that side of business.>> You are making the assumption that the entire agreement would be deferred. This is not how contract revenue is recognized. Worst case, I would expect that some prospects would want to tie up a certain portion of the revenue until the availability. But certainly not the whole thing. This is no different than what you run into when a new software release is imminent and though the customer is taking delivery of the current release, it is the new release they want to implement. I would make the assumption here that by the time one gets to the point of negotiating, the company wants to buy from you. At least that's how it's supposed to work.<g> This is the time for give and take. That's what a negotiation is. SEBL wants to recognize as much revenue as possible, the prospect wants protection. I am 100% certain these things can be worked out. Sales is about developing trust. Not saying this will always be easy but let's not think it will be a dealbreaker either. About the only place I can think of where I know these will be a difficult negotiation is in NY where no one trusts anyone anyway. Any negotiation is difficult there. But even there, where the negotiations are often times run totally by the attorneys, the business person can step in and say..I want this software.. Give up the point. It happens all the time. Granted, there will probably end up being some amount of revenue potentially not recognized but NOT the whole deal. NO WAY. All I can say is this. If I wanted to sell again, I would go to sebl in a heartbeat because I know I would clean up. And not one of the issues raised on this thread would phase me in the least. But not sure I would want the sales stress again either.<g>