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: Rick who wrote (2683)	10/13/1998 11:17:00 PM
From: Richard Tsang	Read Replies (1) \| Respond to of 4509

Just re-read PSFT Q2 report. The management's expressed concern as listed can be real! Has this been discussed among the analysts then? Appreciat if anyone can enlighten me....I am new ti this. Thanks. Excerpts from Q2 report: Special Note The Business Outlook and certain other announcements referenced above contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to: · Contracting activity may be impacted by the increasing intensity of competition from other application vendors, increasingly difficult and protracted contract negotiations, fluctuations in customer demand, and the timing and complexity of large transactions. During the second quarter of 1998, certain competitors became more aggressive with their product pricing and license fee payment terms. If this trend continues, it may have an adverse impact on PeopleSoft's future results and the Company's ability to meet financial expectations in the future. In addition, contracting activity may be impacted by the Company's ability to grow it's direct sales capacity and the timing, quality and acceptance of new software products and releases, the influence, if material, of the Year 2000 problem on overall aggregate demand, and general economic, seasonal and industry conditions; · License agreements executed during the quarter may not meet the Company's revenue recognition criteria; as a result, the Company may meet or exceed its forecast of aggregate contracting activity, but not meet its forecast for license revenues. In addition, Statement of Position (SOP) 97-2, "Software Revenue Recognition" was issued in October 1997 and addresses software revenue recognition matters primarily from a conceptual level and does not include specific implementation guidance. The SOP supersedes SOP 91-1 and is effective for transactions entered into for fiscal years beginning after December 15, 1997. Based on its reading and interpretation of SOP 97-2, the Company believes it is currently in compliance with the final standard. However, detailed implementation guidelines for this standard have not yet been issued. Once issued, such detailed implementation guidance could lead to unanticipated changes in the Company's current revenue accounting practices, and such changes could be material to the Company's revenues and earnings; · The Company's expense levels are based, in significant part, on the Company's expectations as to future revenues, and are therefore relatively fixed in the short term. If revenue levels fall below expectations, operating margins and net income will be disproportionately adversely affected. In addition, the Company continues to evaluate opportunities to enhance and expand its technology and product offerings through potential partnerships, licenses or acquisitions. Such activities, to the extent they are material, could adversely impact the Company's operating results; · The Company has experienced an extended period of growth, which has resulted in a significant expansion in the number of its employees. As a consequence, the Company may commit to real estate projects in order to expand its operations to accommodate expected growth. Such real estate projects typically have a lead time of over one year from commit date to occupancy. There can be no assurance that the anticipated growth projections will be realized, and therefore, the Company may be subject to increased fixed costs which cannot be recovered from operations, resulting in material reductions to net income and cash flows; · Other risks which are detailed in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the March 31, 1998 Quarterly Report (Form 10-Q) and the 1997 Annual Report to Shareholders (Form 10-K).