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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Lee L. who wrote (10543)	4/30/1998 6:46:00 PM
From: Greg Jung	Read Replies (2) \| Respond to of 14631

These are enormous reductions in costs. I suppose they are letting the software "sell itself"? This is money that goes (went) to people promoting the product, and unless there is a lot of squandering hidden in the previous year's numbers, something is lacking. Or, maybe they are just living within their means. Also, the services income increased faster than License revenue but the services expense decreased . Did everybody get a pay decrease (in exchange for the dilution) and they bumped the service contract charges? Is pricing power again possible? (in thousands, except per share data) Three Months Ended March 31, March 30, 1998 1997 (unaudited) (restated) Net revenues: Licenses $ 89,462 $ 85,714 Services 77,720 63,509 ---------- ---------- 167,182 149,223 Costs and expenses: Cost of software distribution 9,833 29,134 Cost of services 37,425 41,152 Sales and marketing 63,889 131,023 Research and development 36,619 35,289 General and administrative 13,531 28,027 Write-off of goodwill and other long-term assets -- 30,473 Write-off of acquired research & development -- 7,000 Restructuring (3,252) -- ---------- ---------- 158,045 302,098