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Technology Stocks : Peritus Software Services (PTUS) -- Ignore unavailable to you. Want to Upgrade?

To: Jaroslav Skrenek who wrote (1494)	7/18/1998 7:32:00 PM
From: Big Dog	Read Replies (1) \| Respond to of 1960

Dear Jaroslav: For info on the company officers, go to www.peritus.com. Press the button "Company." The officers have tremendous tech experience. They all come from well-known companies. Don't be so hard on management, they have very successfully grown this company. Total Revenues have been: $2.2 million 1993; $7.9 million 1994; $18.5 million 1995; $19.2 million 1996; and $40.3 million in 1997. During the 1st Quarter of 1998, they disappointed Wall Street. The reasons: (i) the integration of its merger with Millenium Dynamics, Inc. was a little difficult; (ii) some potential customers held off signing contracts with PTUS until after the end of the 1st Quarter; and (iii) customers demanded total remediation services, rather than simply licensing the "Y2K tools" and doing the work in-house (Note: every significant tool maker has had the same problem: SEEC, VIAS and CRYSF). Even with these difficulties, PTUS management generated $10.1 million of revenues during the 1st Quarter. But, you can't disappoint Wall Street. As you have pointed out, in order to bolster its sales force and respond to its current and future customers demand for full remediation services, PTUS management brought in top-notch talent from IBM. Ever since, PTUS, on a weekly basis, has announced "new" contracts with top quality clientele. Now, I can't tell you what earnings will be for the 2nd Quarter. But revenues should be up significantly. Currently, Zachs is calling for $0.00 earnings for the 2nd Quarter. This is because during the conference call and the press release regarding the 1st Quarter earnings announcement, PTUS management stated that PTUS would "incur a restructuring charge in the second quarter of 1998, including a net reduction in workforce of approximately 35 people." This was disclosed on March 30th ( 3 months ago). So, the knowledgeable investor is fully aware of this fact. However, Wall Street is aware of the top quality clientele PTUS has acquired. Earnings will be excellent for the 3rd and 4th Quarters. You will have to decide for yourself whether you want to "trade" PTUS or hang in there for the fireworks, when Y2K hysteria and earnings momentum kicks-in. Good investing!

To: Jaroslav Skrenek who wrote (1494)	7/19/1998 6:29:00 PM
From: Big Dog	Respond to of 1960

On the Yahoo board, jtb_net (a former PTUS employee) responded to Van Gogh: "Before I left (I was in outsourcing and encouraged to stay for these reasons). I had sat in on and personally had a number of discussions with Don Beck the recently (early this year) hired VP/GM of PTUS's Outsourcing Division (and that was his main focus!): "Y2K is great, but we don't want to be short sighted. It gets us in the door with quality solutions, in a space where we can succeed, AND provides a myriad of new business opportunities for which we are well positioned" (not a quote, but my interpretation). His focus was to grow an organization well positioned to maintain Peritus phenomenal growth as a quality support provider (since 1991) well past the year 2000. Though this vision had always been there, now the infastructure was being built out, with a FOCUS that was being reextended past that of a young growth company. I would encourage all to check the Peritus site (www.peritus.com), review the hiring (jan-apr), these guys know what they're doing! Keep the faith..." ÿ