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

To: Seb Maitra who wrote (778)	4/7/1998 10:11:00 AM
From: PCSS	Read Replies (3) \| Respond to of 1069

Well, here's a conservative negative knee-JERK reaction to yesterday's cc: Volpe Brown Whelan & Co. ISLI: Estimates Lowered; Maintain BUY(2) Rating Price Target: $30 "We are adjusting our FY99 revenue and earings estimate downward from $258.3 million and $1.05 to $242.7 and $1.00 to account for management's conservative guidance with respect to Intersolv's MCI Y2K contract. We are also adjusting our revenue estimate for FY99 to reflect slightly less growth in the data connectivity line of business toward the lower end of management expectations to be more conservative. In addition, we are lowering our Q4:98 revenue and EPS estimates to $57.5 million and $.33 to $55.5 million and $.29 to reflect the MCI uncertainty. MCI's merger with Worldcomm has prmpted a review of which information systems will remain and need Y2K remediation after the MCI/Worldcomm merger is completed. Whie work with MCI has not stopped, Intersolv's management has expressed uncertainty as to the outcome of the review process and its effect on the MCI contract. Intersolv's PVCS line of business is strong and continues to gain momentum. The company will soon announce a seven-figure deal and has recently signed a major agreement with Deutsche Telekom for Y2K and Eurodollar conversion work. Intersolv's management sees good demand for Y2K. Th Company recently announced an agreement with Condor Technology in which Intersov will license its Y2K tools and methodology to Condor to address Y2K demand in the middle market. Many large customers are rquesting services for selected systems as part of triage efforts. This has reduced the sales cycle. On balance, Intersolv is performing well with good growth prospects across the board. Despite ongoing change in the business, the overall balance and strength gives us confidence that Intersolv will achieve our growth expectations. We believe the stock remains quite attractive ona value basis in light of expected EPS growth of 30%" ------------------------- My read: They've taken the conservative approach and ISLI will do better. The ISLI payoff is there it just make take a little longer to prove that ISLI's growth is steady and REAL.....ISLI still needs to gain the analysts confidences. Michael

To: Seb Maitra who wrote (778)	4/7/1998 12:41:00 PM
From: fyi	Respond to of 1069

It certainly is amazing. But then maybe the street is gun shy for all the many times it has gotten together like a bunch of cows and stampeeded off to hype the price of a stock up beyond any sort of reasonable expectations. Now, how many of those can you think of. Remember Forte or how about the old Atria that was acquired trice and now is within Rational. The problem with so many of these street analysts is that they don't understand the fundamentals. Their jobs only give them brief periods to focus. IMHO that means these unfocused types fall prey to big hype machines and are suspicious of anyone who is honest and does not cater to their whims for quick trading profits. For the patient, ISLI has 3 excellent revenue engines going here that will deliver. No ghosts in the closet here.