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

To: PepeLePeu who wrote (1585)	7/22/1998 5:16:00 PM
From: Raptor	Read Replies (1) \| Respond to of 4509

Pepe and Just Obs ... I believe clients are billed for annual maintenance on anniversary dates of their contracts, so you will not have all clients being billed in March or whenever. Also, clients are billed for maint, regardless of whether or when they request the delivery of upgrade CD's. Maint costs same no matter what release are on. Also maint is a percentage of the current retail price of the software. So maint goes up every year, but in theory clients enjoy benefits of an enhanced system for the enhanced bill they get. Some one else asked what maint was. I can get the approx. % of price - I have forgotten it.

To: PepeLePeu who wrote (1585)	7/22/1998 7:35:00 PM
From: Lizzie Tudor	Respond to of 4509

Not to be obvious, but for those not in the sw business, service revenue is mathematically proportional to prior license sales, more or less. Some businesses which have autonomous consulting units do not follow the general rule but overall its true. So for a company like Psft we all know they are going to have huge service revenue since the past was grand, but analysts look to license revenues for the future. Michelle