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Technology Stocks : SDRC - Structural Dynamics Research Corp. -- Ignore unavailable to you. Want to Upgrade?

To: J. Patrick McMurray who wrote (806)	7/7/1998 3:01:00 PM
From: Jerry Rush	Respond to of 946

Triva... .nothing else: Not that it means much today, but since a lot was said about Windchill head being a former Metaphase guy, this is interesting. Jerry ~~~~~~~~~~~~~~~ Spotfire Adds President to Management Team Enterprise Information Management Veteran Joins Start Up CAMBRIDGE, Mass.--(BUSINESS WIRE)--July 7, 1998--Spotfire, Incorporated, a leading supplier of data exploration and collaborative discovery solutions to the pharmaceutical, specialty chemical and biotechnology market, has named Rock Steven Gnatovich as its President and COO. Mr. Gnatovich comes to Spotfire with extensive experience in enterprise information management and business development. Prior to Spotfire, Mr. Gnatovich was responsible for founding two of the leading enterprise information management companies serving the engineering and manufacturing market. He was CEO, President and one of the founding members of Windchill Technology prior to its acquisition by Parametric Technology Corporation (PMTC). Before Windchill, Mr. Gnatovich participated in the founding of Metaphase Technology as a member of its board and in his role as Vice President, PDM Operations for Structural Dynamic Research Corporation (SDRC).

To: J. Patrick McMurray who wrote (806)	7/7/1998 3:11:00 PM
From: Jerry Rush	Respond to of 946

Llistened to the call again. Missed some things the first time. Laura C. asked about size of BIG PDM deal. I can't say accurately, but it was something like $ 2-4 million. (3 ?) N.A. shortfall was also about $2 million. Asia about the same $2 mill. short of expectations. At this time, they plan no cut-backs in sales, R&D or Service. In fact still expect to increase sales staff (others too?). Expenses will be up about 20% Revenues up only about 7%. This is where the shortfall really is, imo. J. V. of Merrill Lynch questioned them about losing market share in MCAD. Questionable whether they are or aren't. The only thing (per their statements) that might make Q-3 better than Q-2 is the Big PDM deal. I'm not sure about that. IF the deal is $3 million....and they make 19% margin (doubtful) it would only amount to $0.015 per share if the whole thing was booked in the qtr. The reason this relates as a larger loss is because they probably charged expenses for chasing this account. It wasn't just one Big PDM contract. Starting statements said, "Few large deals failed to close." So there was more than one. ... but one was larger than others. Other negatives: One said they would concentrate on costs... another said no cuts in planed increase in sales staff and implied R&D & Service would continue to be expanded. Additional competition coming on-line. Sales staff unable to close deals... they called it execution. Asia will be weaker ( but still growing. just not as much growth.) Possible positive: PDM "Out-of-Box" solution in works... perhaps 50% completed. Apparently a lesser product for smaller companies. Can't help but wonder if they will hold the news til the the next conference call on the 21st. Of if the deal is singed yet. Just my viewpoint... Jerry

To: J. Patrick McMurray who wrote (806)	7/7/1998 3:20:00 PM
From: Jerry Rush	Read Replies (1) \| Respond to of 946

Why wasn't the contract signed? 1. Was the customer trying to put pressure on SD and gain concessions for signing by deadline time? 2. Are they not satisfied that SD can deliver? 3. Are they having second thoughts about who they want to deal with? 4. Is Weyand and group unable to close a deal? 5. Is the customer just bleeding SD to gain knowledge and has no intention of signing? 6. Since Deadline missed, will the deal stagnate for another three months? 7. Is the deal dead? 8. And why is a sales organization structured so that the majority of sales comes in the last week of the last month of the qtr? I'd like to know. Jerry