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 : Security Dynamics SDTI -- How much money can they make?? -- Ignore unavailable to you. Want to Upgrade?

To: ACEINVESTOR who wrote (413)	4/14/1998 7:05:00 PM
From: Maverick	Read Replies (3) \| Respond to of 1614

Reasons why SDTI could miss the next qtr too: RSA sale force is weak, the SecureSight suite comes out late in Q2, no guarantee of SecureSight reception SECURITY DYNAMICS TECHNOLOGIES INC. (SDTI) 27 1/4 +5/16. Cowen & Co is today advising investors to take a deep breath and get grip: the warning issued by network security software firm, Security Dynamics, was not that bad. Yesterday morning, SDTI informed investors and Wall Street that it expects 1st qtr results to come in shy of Wall Street views. For the period, SDTI expects an operating profit of $0.14 a share, a nickel below Wall Street projections, compared with year-ago profit of $0.12 a share. The company puts quarterly revenues at $39 million, up 37% on a year/year basis. On the news, Goldman Sachs booted the stock from its "recommended list" to a level of "market perform." Cowen & Co, however, was not so reactionary. While it acknowledges that the earnings warning came as a surprise, it does not think yesterday's 15 9/16 point, or 37%, flogging was warranted. Continuing to rate the stock a "strong buy," Cowen sees price upside of 50% from these levels, to the firm's price target of $41. It's rationale: while Q1 will come in about 26% light and Q2 EPS could miss by 5 cents ( or approx. 23%), Cowen sees SDTI's financial difficulties --which the company stated were a result of its inability to to close certain sales before the end of the quarter-- as temporary . Moreover, the firm is expecting big things from SDTI's new SecureSite product, which is scheduled to be rolled-out by early-June. From Briefing.com April 2, 1998/FOOLWIRE/ -- Network and data security solutions provider Security Dynamics Technologies (Nasdaq: SDTI) plunged $14 7/16 to $28 1/16 after announcing that its first quarter results will fall short of expectations due to failure to close some expected sales for the quarter. Excluding the results of the acquisition of Intrusion Detection Inc., Security Dynamics anticipates earnings rising 17% to around $0.14 per share versus $0.12 for the year-earlier period. Though the company still has a majority market share in authentication, encryption, and identification software, Prudential analyst Paul Merenbloom says the company's "RSA salesforce isn't as mature as the Street expected," according to Bloomberg News.[IMHO, SDTI will miss Q2 as well and you could get back in SDTI in the high teens after Q2 earnings release. Just imagine, the ST. pummeled SDTI by 40% for the first miss ever, I wonder how much the St. will punish for the second miss in a row. The SecureSite suite of packaged products won't come out until late Q2, not early enough to pick up sale. Besides, there is no guarantee that the suite will be well received.]