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

To: Raptor who wrote (2849)	10/19/1998 2:23:00 PM
From: ratlong	Read Replies (2) \| Respond to of 4509

Melissa and Raptor- You are correct about the Select product line and they have a totally different implementation approach to reduce the costs. The product is targeted at companies with $10M to $250M in revs. The product is growing very rapidly. My understanding is that their install base more than doubled this year and the number of sales has already exceeded all of last year. The problem is one of capacity. The $s on the Select product group are far less than the Direct product line. Therefore, they need to handle an expontential growth of installations to ever command a significant % of their revenues. The companies buying the product won't pay the $s associated with a typical PSFT implementation. In fact, they probably won't may much at all. Therefore, PSFT needs to significantly reduce the cost of implementation or automate it all together. They currently have implemenation partners who conduct the majority of work on their own site. PSFT needs to grow these companies rapidly- adding new ones and making current ones more effective. Anyway, it will have to represent a larger % of their revenues in the future and the current growth rate is substantial, but under the current approach, they are going to plateau WRT capacity. Hope this helps...