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To: Johnny Canuck who wrote (18079)	10/20/1998 12:20:00 AM
From: Clint E.	Read Replies (1) \| Respond to of 67803

Hi Harry. Your wish is my command! I know LU will report on Wed. morning. As you said, it should be biz. as usual. I'll find out when NT is supposed to report and will do that one too. Have a safe trip. Clint

To: Johnny Canuck who wrote (18079)	10/20/1998 12:42:00 PM
From: Ronald J. Clark	Read Replies (1) \| Respond to of 67803

Am I correct in seeing both the DJIA and the S&P500 at approx their 200 day moving average right now? Anyone attach any significance to the averages either convincingly going through or heading back down from these levels? Ron Clark

To: Johnny Canuck who wrote (18079)	10/20/1998 10:55:00 PM
From: Clint E.	Respond to of 67803

Tues. Oct 20, 98===IBM Earnings =================================== Slow hand Big Blue. IBM's (IBM:NYSE) third quarter earnings were nothing to write home about, but in a volatile market, they were exactly what the doctor ordered: Slow but solid earnings and revenue growth. IBM beat analyst consensus estimates by three cents, earning $1.5 billion, or $1.56 per share, in the third quarter, up from $1.4 billion, or $1.35, one year earlier. Revenue was up 8% to $20.1 billion from $18.6 billion in last year's third quarter and while management reported some continuing weakness in Latin America and Asia, hardware sales were up 4% year-over-year. One of the more encouraging things coming out of this evening's analyst conference call was that IBM's hardware business, which was off 7% in the first half of the year, was up 4% year-over-year in the third quarter. This was due in part to an improved performance in IBM's PC business, a concrete sign that PC's fortunes have improved in the industry. Doug Maine, IBM's chief financial officer, did say that he believes the company can improve its market share in this arena as well, even in the hotly-competitive consumer space. Expect more aggressive pricing of PC's in the fourth quarter for IBM. While the overall earnings news seemed promising, Maine also was quick to talk down analysts listening to the call. "We ask analysts to please not raise their earnings estimates going forward," said Maine, in a rather unusual plea during such a public call. In terms of the company's fourth quarter, Maine said he was comfortable with the analyst's earnings per share growth rate of 58%. The current analyst estimate is for $2.42, according to First Call. Merrill Lynch's Steve Milunovich, an analyst who is so bullish on IBM that he has it on his focus list, says that he is pleased the company's pre-tax income was the same (8%) as its year-over-year revenue growth. "This means that its integrated computer strategy is working," he explains. "As long as the PC business doesn't hurt IBM, I'm pleased, and it didn't this quarter." Merrill Lynch has performed some consulting work for IBM recently, but not engaged in an underwriting capacity for the company. Milunovich said after the call, he was still comfortable with his Street-high estimate of $2.48 for the company's fourth quarter. Another popular subject during the call was global Information Technology (IT) spending and whether it will be the same in 1999 as it was this year, when spending is expected to increase 8% to 9% over 1997. "It seems as if IBM was putting out cautionary words that its larger accounts are a bit uncertain over IT spending in 1999," says Daniel Kunstler, an analyst with J.P. Morgan, who rates the stock a buy and has no underwriting relationship with IBM. Herb Park, IBM's director of investor relations, noted that the company is hearing cautionary things from its larger accounts, and now the company expects to see flat IT spending compared with this year's. IT spending, Park noted, makes up 20% of worldwide GDP, or $1 trillion; how IT managers spend company dollars will play a big role in not only IBM's future but the overall U.S. market as well. The anticipation of good earnings has sent IBM up over the last week, but it closed down 1 1/2 to 137 7/8 Tuesday. In after-market trading, the stock was off 1/4, to 137 1/2, according to Reuters Instinet. For more info on institutional holders of this stock, as well as financial statements and earnings estimates, please see the Thomson Company Reports. ============================================================== NEW YORK, Oct 20 (Reuters) - IBM remains cautious about further growth for the rest of 1998 and into 1999, despite strong performances in its computer hardware, software and services businesses and the positive effect of a weaker U.S. dollar, Chief Financial Officer Doug Maine said Tuesday. ''What we are saying to do is don't raise your estimates,'' IBM Chief Financial Officer Doug Maine told brokerage analysts in a conference call, sounding subdued about the outlook for further growth in the rest of 1998 and through 1999. Earlier, IBM reported third-quarter net profits of $1.5 billion, slightly ahead of Wall Street expectations and up from to $1.4 billion in the third quarter of 1997. Revenues rose to $20.1 billion from $18.6 billion. Looking ahead, Maine said world economic turmoil and falling semiconductor prices had cast a pall over the growth seen in the latest quarter. ''Given the uncertainties, we just don't think it would be prudent to take ... estimates up,'' he said. Maine said IBM's surveys prompted it to believe that growth in world spending on information technology (IT) would slow in 1999 from a projected rate of 8- to 9-percent during 1998. ''What we are hearing from our customers is that IT spending (will) be flat (or slightly) up next year,'' he said. Maine declined to comment specifically on Wall Street earnings forecasts, noting only that Wall Street was already looking for 15- to 16-percent growth in earnings through 1999. The fourth-quarter consensus among brokerage analysts calls for IBM to report earnings of $2.42 per share, up from $2.11 in final quarter of 1997. The 1999 full year earnings forecast stood at $7.49 compared to $6.49 for 1998 as a whole. The estimates are based on a survey of analysts by First Call Inc. However, Maine said IBM is better positioned than many companies in the computer industry to weather a slowdown in technology spending, due to its diversified base of revenues from hardware, software, services and across geographies. Maine noted that more than 50 percent of IBM'S revenues come from multiyear contracts that vary little year-to-year. These ''annuity-like'' revenues are generated by payments for IBM patents, financing, many of its services contracts and some software, especially that used to run mainframe computers. ''That means no matter what happens in the world we are going to get paid,'' he said. The percentage of revenues from these consistent sources has been nearly doubled this decade, due largely to the growth of IBM's computer services business, which in the third quarter accounted for 29 percent of the total $20 billion in revenues. Discussing key businesses, Maine said that the company's personal computer business had turned profitable during the third quarter after losing money in the first half. In spite of flat revenues, he predicted IBM will grab a larger share of the PC market, as the company's product mix shifted increasingly to consumer PCs. PCs shipped by distributors to final purchasers grew 30 percent, he said. Revenues for servers, or large computers systems like mainframes, mid-range systems and workstations grew in the low-single digits during the quarter. Mainframe revenues grew 20 percent year-to-year as a new generation of machines began shipping in August, he said. Total hardware revenues rose 8.7 percent year-to-year, he said, reversing the 7 percent decline in hardware revenues IBM endured in the first half of 1998. Strong revenue growth of 15 percent in North America reflected a turnaround in its personal computer and mainframe businesses. But the sharp decline in the Canadian dollar had cost IBM nearly a percentage point of growth in the region. Despite a 16-percent fall in Asia-Pacific revenues in the third quarter, due largely to unfavorable currency translation effects, IBM noted that the economic turmoil in the region could spur new demand for its computer services operations there. Maine said IBM was in talks with several Asian firms on strategic outsourcing contracts, major deals in which IBM provides services potentially worth billions of dollars over the five- to 10-year life of such agreements. ''The short-term pressure could lead to long-term positives,'' Maine said of the possibility that economic turmoil in Asia could increase reliance on IBM services. ===================================

To: Johnny Canuck who wrote (18079)	10/20/1998 11:12:00 PM
From: Clint E.	Read Replies (1) \| Respond to of 67803

PeopleSoft sees growth slowing Tues. 10/20/98==========PSFT Earnings============ PLEASANTON, Calif. (CBS.MW) -- Acknowledging what many investors had been speculating for weeks, PeopleSoft said Tuesday it expects its growth rate to tail off. Ron Codd, PeopleSoft's (PSFT) chief financial officer, said in an interview that sales in 1999 are expected to increase 25 to 30 percent. That's about half the rate at which the company will expand this year and down dramatically from its 90 percent growth rate over the previous five years. Speculation about a slowdown -- sparked by declining corporate profits and lower software spending -- have cut PeopleSoft shares in half over the past three months. On Tuesday, PeopleSoft shares dropped 1/16 to 25 9/16. Meeting the Street Codd's comments came as PeopleSoft reported third-quarter earnings in line with analysts' expectations. The Pleasanton, Calif.-based company said it earned 17 cents per share on sales of $351.3 million, up from 11 cents per share on sales of $217.1 million in the same quarter last year. Sales of PeopleSoft's core software, which helps businesses automate many basic functions, increased 30 percent in the third quarter -- about half the growth rate recorded in recent years. Analysts say the slowdown stems from the fact that businesses are delaying purchases of PeopleSoft applications as they spend money to fix the pending year 2000 problem. Add to that the fact that the International Monetary Fund projects the global economy will expand just 2 percent this year -- the poorest showing in seven years. Operating in uncertain conditions "There's a lot of uncertainty right now. We don't know what to make of the [year 2000] problem or global slowdown," Codd said. "We're not too sure of the impact." Rivals -- most notably Netherlands-based Baan Co. (BAANF), which pre-announced weak earnings this quarter -- have cited those problems as their rates have slowed. (See more on Baan.) "Maybe they know something we don't, but we just don't have the data to say one way or the other" if those factors are also hurting PeopleSoft, Codd said. Earlier this month, both Morgan Stanley Dean Witter and Goldman Sachs downgraded PeopleSoft. Morgan analyst Chuck Phillips explained that he'd cut his outlook -- all the way to "neutral" from "strong buy" -- because of worries about increased competition coupled with decreased spending. Worrisome silence And, just last week, PeopleSoft spooked investors by pulling out of an investment conference, leading many to speculate the company was trying to avoid talking about bad news. (The timing of the pullout also sparked concern, as it came one day after rival Baan warned.) Codd reiterated that PeopleSoft pulled out of the conference -- and its "highly charged atmosphere" -- because it was limited in what it could have said due to the "quiet period" ahead of today's earning release. All of the concerns arose after PeopleSoft held an unprecedented conference call to discuss its outlook. During the call, the company reiterated its goal of increasing sales by 60 to 65 percent for 1998 while keeping operating margin between 18 and 20 percent. ================================================================= PeopleSoft's net rises but profit growth slows PLEASANTON, Calif., Oct 20 (Reuters) - PeopleSoft Inc. on Tuesday reported third-quarter earnings that matched analyst forecasts, though profit growth slowed at the No. 2 maker of application software. The company, whose products help companies manage human resources, payroll and other functions, said net income rose 54 percent to $44.2 million, or 17 cents a diluted share, from $28.7 million, or 11 cents, in the same period a year earlier. Revenue rose 62 percent to $351.3 million from $217.1 million. The results were in line with expectations of 17 cents a share, according to First Call Corp., which tracks analyst forecasts. Revenue and profit growth in the software business have been slowing as companies spend more on getting their computers ready for the year 2000 and less on buying products from PeopleSoft and others. The company warned in July that profits for the next several quarters would be hurt by a slowdown in mainframe software sales. On Tuesday, Pleasanton, Calif.-based PeopleSoft said it saw revenue in 1998 rising about 60 percent from the $815.7 million it generated in 1997. That compares with 81 percent growth the year earlier. It forecast 1999 revenue to be about 25 percent to 30 percent above what it will record this year. PeopleSoft, No. 2 in applications software sales behind SAP AG, also said it expected its operating margin to be at the lower end of its 18 percent to 20 percent target. =================================================================

To: Johnny Canuck who wrote (18079)	10/20/1998 11:44:00 PM
From: Clint E.	Read Replies (1) \| Respond to of 67803

Tue. Oct. 20, 98===Microsoft Earnings Up 154 Percent======= SEATTLE (AP) _ Microsoft Corp. (MSFT - news) reported a 154 percent rise in first-quarter earnings that the software maker attributed to surprisingly strong overseas demand for its new Windows 98 operating system. In announcing its earnings Tuesday, Microsoft said Windows was particularly strong in Japan despite the country's economic recession. Microsoft said it earned $1.68 billion, or 62 cents per diluted share, in the three months ended Sept. 30, up from $663 million, or 25 cents per diluted share, in the same period a year earlier. Revenue rose 26.3 percent to $3.95 billion from $3.13 billion. The results for the just-ended quarter reflected a one-time gain of $160 million from the sale of the software subsidiary SoftImage. In the first quarter of 1997, Microsoft had a write-off of $296 million related to the purchase of WebTV Networks. Even when taking those charges into account, profits were $1.52 billion or 56 cents a share, up 58 percent from $959 million or 36 cents a share a year ago. The numbers ''look terrific,'' said Rick Sherlund, an analyst with Goldman Sachs in New York. ''It was a blowout quarter and they gave very upbeat guidance for the next quarter as well.'' Greg Maffei, Microsoft's chief financial officer, told analysts in a conference call that revenues and earnings should remain healthy through the end of Microsoft's fiscal year, which ends June 30. He said earnings per share for the second quarter should be at least 35 percent higher than in the same period of 1997, which would make them about 57 cents a share, up from 421/2 cents a year earlier. Analysts are estimating an earnings of 52 cents a share for the second quarter, according to Zacks Investment Research. On top of Microsoft's revenues, the company has amassed a ''phenomenal'' $17.2 billion in cash and short-term investments, and has no debt, Sherlund said. Microsoft brought out Windows 98, its upgrade for its key operating system that runs most personal computers, on June 25. To date, more than 10 million copies have been sold, either as retail packages or with new computers. Pieter Knook, Microsoft's vice president for Asia, said in a statement, ''the retail acceptance of Windows 98 was quite strong in Japan.'' The company also said demand for Windows 98 was strong in several European countries. Maffei said that while revenue growth has slowed for the company's business software suite Office 97, it still posted strong results. The results were released after the close of stock trading. Microsoft stock closed down $2.683/4 to $100.25 a share on the Nasdaq Stock Market. The earnings were posted as Microsoft's lawyers defended it in a federal court in Washington, D.C., against the government's landmark antitrust lawsuit against the world's largest software manufacturer. The government contends Microsoft used its influence as the maker of Windows to try to dominate other software markets. Microsoft says that while it played hard against competitors, it played fair. ========================================== Microsoft Announces First Quarter Revenue and Income Solid demand from Europe and Japan drives results Redmond, Washington— October 20, 1998 - 1:30 p.m. PDT — Microsoft Corporation today announced revenue of $3.95 billion for the fiscal first quarter ended September 30, 1998, a 26% increase over the $3.13 billion reported in the comparable quarter of last year. Net income reached $1.68 billion including a $160 million one-time gain on the sale of Softimage. This compares to the previous year's net income of $663 million which included the previously announced $296 million write-off of acquired in-process technology related to the purchase of WebTV Networks, Inc. Excluding these noncontinuing items, net income rose to $1.52 billion compared to the previous year's net income of $959 million, and earnings per share grew to $0.56 from $0.36. "Demand was stronger than anticipated due to the successful launch of Microsoft® Windows® 98 in Japan and several European countries," said Greg Maffei, chief financial officer. "While revenue growth has slowed in Office 97, the product continued to post strong results and customer adoption of Windows NT® Workstation is at an all-time high." "The retail acceptance of Windows 98 was quite strong in Japan as it provided consumers with new functionality to upgrade their PCs," said Pieter Knook, vice president, Asia region. "While we're pleasantly surprised by the strength of business this past quarter, the outlook remains tepid." Since its launch on June 25th, worldwide demand for the Windows 98 operating system has resulted in more than 10 million customers acquiring either a Windows 98 retail upgrade, or a new Windows 98-based PC. Customer satisfaction remains high and PC makers continue to report lower support costs with Windows 98 than with Windows 95. Also during the quarter Microsoft announced the shipment of Microsoft Office 2000 beta 1 to a record 20,000 customers and Solution Providers, providing an early opportunity for evaluation of the next version of the world's best-selling productivity suite. On the server side, Microsoft Exchange continued its excellent momentum shipping more than 3 million clients for the 3rd consecutive quarter. Microsoft Exchange shipped more client licenses than Lotus Notes for the first half of calendar year 1998 according to both IDC and the Electronic Mail and Messaging Systems Newsletter. Microsoft SQL Server™ reflected similar momentum, posting a record quarter in revenues. Microsoft also announced the upcoming launch of SQL Server version 7.0 on November 16th at Comdex. Along with the gains in scalability and reliability in SQL Server 7.0, Microsoft and Compaq announced an initiative to integrate high availability features previously available only in Tandem's NSK, Digital UNIX, and the Open VMS operating system into future versions of Windows NT. Beta 2 code for Windows NT 5.0 operating system was broadly distributed this quarter to more than 250,000 developers, technical beta sites, and channel partners worldwide via the Microsoft Developer Network. Additionally, Microsoft announced worldwide availability of the Microsoft Visual Studio® 6.0 development system, the complete suite of development tools for building scalable enterprise solutions. During the quarter, Microsoft released an updated version of MSN™ and announced plans to launch local MSN portals in 24 additional countries and regions, making it the most widely distributed portal in the world. The network includes several products that are leaders in their respective categories -- including news (MSNBC), automotive (MSN CarPoint™), email (MSN Hotmail) and games (MSN Gaming Zone) -- with a total reach of over 34%, meaning that one-third of all unique users of the Web access an MSN site in the average month according to Media Metrix. The announcement of a one-year $60 million deal with search providers AltaVista, Lycos, Infoseek, and Snap underscores the value of MSN as a distribution point for some of the Internet's best established brands and reinforces the status of MSN as one of the leading portal brands on the Web. "We believe the breadth of these results reflects our dedication to the basic principle of continually listening to customers, innovating our products, and keeping the focus on making the best software we can to improve people's lives at work, home, and school," said Bob Herbold, chief operating officer.

To: Johnny Canuck who wrote (18079)	10/23/1998 4:52:00 AM
From: Clint E.	Respond to of 67803

Friday 10/23/98, ATI posts best third quarter ever LOS ANGELES, Oct 22 (Reuters) - Wireless services giant AirTouch Communications (NYSE:ATI - news) on Thursday reported its best third quarter ever -- a 40 percent jump in profits to $178 million -- boosted by strong sales overseas despite increased competition at home. The company, which offers service to cellular, paging and PCS (personal communications services) customers, posted net earnings of 30 cents a share, up from 25 cents, or $127 million, a year ago. Revenues rose to $1.96 billion from $1.58 billion as the company added 1.09 million new customers. San Francisco-based AirTouch said that despite the global economic crisis, its international ventures showed the strongest growth, adding 735,000 subscribers -- double the figure added in last year's third quarter. ''Stellar execution, along with the public's continuing hunger for mobile communications, helped AirTouch achieve its best quarter ever in the face of economic uncertainty around the world,'' Chief Executive Sam Ginn said. International operations accounted for more than half of the quarter's revenue growth. ''This year almost three-quarters of our additional customers came from the international market and I don't see that changing,'' Ginn told Reuters in an interview. ''We are becoming increasingly an international company.'' Ginn noted that the global economic crisis has not had any discernible impact on AirTouch because the usage of wireless systems abroad was far below its potential. The global crisis could eventually impact the company, possibly in a positive way, Ginn said, noting that some of its partners in countries such as Japan and Korea might find it difficult to make the capital investments needed to expand, giving AirTouch the opportunity to increase its stake in some overseas ventures. ''That provides an opportunity for AirTouch to increase its investments in those parts of the world, which we think are going to come back rather robustly,'' he said. The company said its domestic operations fared well despite increasing competition and falling prices. AirTouch said U.S. average monthly revenue per customer fell by 12 percent compared with last year, the smallest such drop in two years. The company offset this decline by cutting the monthly cost of servicing U.S. customers by 13 percent by improving operating efficiencies. ''In the United States, we are feeling the heat of increasing competition. But we are fighting back,'' Ginn said, adding that the company expected more people will sign up for wireless phones as prices fall. Ginn said the company needed to reduce the cost of acquiring new customers. In the United States for example, where the company subsidizes analog and digital phone sets, it can cost between $275 and $300 to acquire one customer. ''We need to bring those costs down and we have had some success with that,'' he said, adding that as the cost of sets decreases, the cost of new customers will also decrease. Ginn said AirTouch was considering acquisitions or alliances that would give it a nationwide presence in the United States, but said the company is not in active talks. ''It is increasingly clear you need a nationwide footprint and you either have to get it by arrangements with other wireless companies or you have to buy your way into it and we are willing to do either,'' he said. AirTouch said it expected to meet its 1998 goal of adding more than 3 million cellular and PCS customers worldwide. The company's shares were unchanged at $53.25 in late New York Stock Exchange composite trading.

To: Johnny Canuck who wrote (18079)	10/23/1998 4:59:00 AM
From: Clint E.	Read Replies (1) \| Respond to of 67803

10/23/98....Nokia Q3 net sales by divisions. HELSINKI, Oct 23 (Reuters) - Finnish telecommunications equipment group Nokia on Friday gave the following breakdown of its third-quarter net sales (FIM million): -------------------------------Q3/98----------Q3/97----------Analysts fcst Telecommunications----------6,185----------4,370----------6,200 Mobile Phones---------------12,956----------6,671----------10,700 Other operations------------1,152-----------1,630----------1,642 Inter-business group eliminations----------(-229)----------(-308)------------N/A TOTAL-----------------------20,064---------12,363--------------N/A NOTE - analysts' forecasts were median estimates.