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Technology Stocks : TSR, Inc. [TSRI] Good Earnings! -- Ignore unavailable to you. Want to Upgrade?

To: Renee Scherb who wrote (223)	3/24/1998 10:46:00 PM
From: Andrew Furst	Read Replies (1) \| Respond to of 281

Renee, the earnings/revenues were disappointing, and the selloff was justified IMO. Disturbing also that the stock fell last week, ahead of the earnings report. Unfortunately for TSR, it appears that many organizations are unable to admit they need a Y2K fix of their software code at this time. I believe that TSR's "Catch/21" does not permanently fix the date problem, but does extend the code's useful life for a few more decades (correct me if I'm wrong). Thus perhaps some organizations are not yet willing to use a "temporary" fix. But they will when it comes to "crunch time" and their code is causing errors in late 1999 and early 2000. That is when TSRI is likely to make their big money, not now. The report was a good news/bad news situation - good news about the 16 very satisfied major customers and many prospects, also the high profit margins; bad news regarding the somewhat low level of Y2K business at this point. It's definitely not over, but TSRI will need to make a lot of Y2K profit to justify the stock price - and they didn't do this in the past quarter. The price adjustment therefore seems realistic. I still believe TSRI will get a huge amount of business as 1999 ends and 2000 begins. But that still a long way off, and there is no guarantee even then. So I'd guess the stock will move little from here (net) at least until the next earnings report - unless of course TSRI becomes subject to an acquisition.