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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (1549)	7/21/1998 9:57:00 PM
From: jayhawk969	Respond to of 4509

Not a bad press release on earnings day. biz.yahoo.com

To: Lizzie Tudor who wrote (1549)	7/21/1998 10:37:00 PM
From: Melissa McAuliffe	Respond to of 4509

Michelle, That's an interesting point you raised about SAP's revenues. I don't follow SAP's #'s so I can't comment on where their revenue came from. But I was reading the psft announcement to see what the contracting activity was for this quarter. I noticed that total contracting activity for Q2 including software and services was 219.8M vs. 146.4M in Q2, 97. If total contracts were 219.8M and total revenue was 320M then I would say that close to 50% of this qtrs revenue must have come from previous sales. (there's that good old deferred revenue again). This represents a growth of only 50% in contracting activity and since svcs seems to be growing at a more significant percentage it makes me wonder what the contracting growth rate was for software. I think in many ways this number is actually more important at this point than total revenues in determining growth rates. Comparing this to Q2 of 97, contracting activity was 146M and revenues reported were 184M. I'm just raising this as something to look at particularly in determining whether growth is slowing.