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

To: GJD who wrote (1572)	7/22/1998 2:16:00 PM
From: Melissa McAuliffe	Read Replies (2) \| Respond to of 4509

Well...the growth slowdown wasn't unexpected. This has been coming for some time now since software growth rate started declining at least one (maybe two)quarters ago. And psft has given guidance on this. Maybe people just thought they were trying to be very conservative when in fact they were being somewhat realistic. Actually this is when the deferred revenue comes in handy. But this is the 2nd qtr where psft only beat estimates by .01. I don't think all this drop is from sympathy w/CA or Greenspan. There have been more than 13M shares traded today. I think it's just money moving out of psft and looking for greener pastures. Not that anything is wrong w/psft. Just that the growth rates are declining. There's nothing wrong w/svcs. growing faster than software. If software is growing over prior periods. At least that's MHO.

To: GJD who wrote (1572)	7/22/1998 2:30:00 PM
From: LLCoolG	Read Replies (2) \| Respond to of 4509

PeopleSoft also mentioned Asia as an excuse for lower software sales in their CC. The Street finally put 2 and 2 together, think they have 4, and figure that dwindling software sales emphatically state that PSFT is too big for thier continued explosive growth. At least the valuation is not outrageous anymore, at least compared to the other "blue chip" tech issues. The other software firms that are actually tied to CA ave not moved down one iota. That leads me to believe that while people may say that PSFT is lower in sympathy with CA, I don't believe it. I would think we are stuck now between 40-48 for a while, with perhaps a move to the low 50's by year's end, keeping in line with the new view of the traditional valuation of this stock. Still 20% over 6 months is not too bad if you can stand to watch the other stocks rocket. Regards, G

To: GJD who wrote (1572)	7/22/1998 3:13:00 PM
From: Just_Observing	Read Replies (2) \| Respond to of 4509

I agree that PSFT is down because of the change of the proportions of license/revenue numbers. However, the sequential decline in the license portion of deferred revenue probably does not mean much, IMHO. PSFT customers may have prepaid for the 7.5 upgrade that was released in March (deferred rev.). This upgrade should have been delivered this quarter causing the license portion to be cut. So the 2 million sequential decline in the license portion of deferred revenue out of a total d.r. of 396.2 million is not that significant. If it had occurred without an upgrade in the quarter, I would be more concerned. This is just my opinion.