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

To: John Carragher who wrote (1591)	7/22/1998 6:31:00 PM
From: Henry Eichorszt	Read Replies (1) \| Respond to of 4509

PeopleSoft slides on growth concerns By Brenon Daly, CBS MarketWatch Last Update: 04:47 PM July 22, 1998Also see NewsWatch NEW YORK (CBS.MW) -- PeopleSoft shares slipped 8.4 percent Wednesday amid concern that torrid growth rates at the business software maker may slow just a tad. The Pleasanton, Calif.-based company (PSFT) said it expects sales in the third quarter to be about 60 percent above the previous year's level. That is down from more than 70 percent expansion in recent quarters. Breaking NewsU.S. stocks skid on profit warningsAmazon sales triple, bookseller saysComputer Associates' stock plungesGolden State pours onto Wall StreetGreenspan repeats inflation warningMore top stories...CBS MarketWatch Front PageCBS MarketWatch ColumnsUpdated: 7/22/98 5:55:26 PMÿET The "slowing momentum causes apprehensions and uncertainties that tend to hurt investor sentiment," noted Goldman Sachs analyst Rick Sherlund. Nonetheless, Sherlund kept PeopleSoft on his bank's "recommended list." Shares of PeopleSoft slipped 3 7/8 to 42 3/8 on volume that was more than four times heavier than average. The stock sells for 71 times the past four quarters' profits and 49 times next year's anticipated profits. PeopleSoft -- which makes software that automates basic business operations such as accounting and payroll -- has also been shifting its focus to its service revenue, away from just software sales. In the most-recent quarter, service revenue nearly doubled (up 97 percent) while growth of software license fees increased 53 percent. Revenue from training and maintenance of PeopleSoft products now generates more money than pure software sales. Concerns about the slowing growth and shifting focus overshadowed a better-than-expected earnings report. PeopleSoft earned 15 cents per share, 1 cent ahead of analysts' expectations. Sales increased 74 percent to $320.5 million. The results compare to 9 cents of earnings on $184.4 million in the previous quarter. Brenon Daly is a reporter for CBS MarketWatch. CBSMW MarketPlace