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

To: Melissa McAuliffe who wrote (3071)	10/21/1998 10:55:00 AM
From: Beltropolis Boy	Respond to of 4509

comments via CNNfn. PeopleSoft stock tenderized Software firm shares soften 22% after revenue growth disappoints analysts October 21, 1998: 9:45 a.m. ET PeopleSoft takes hard fall - Oct. 2, 1998 NEW YORK (CNNfn) - Shares of human resources software maker PeopleSoft Inc. slid in after-hours trade after the company reported slowing profit growth late Tuesday. Although total revenue in the third quarter climbed 62 percent to $351.3 million from $217.1 million a year ago, licensing revenue -- a key indicator watched by industry analysts -- rose only 30 percent to $147.3 million from $113 million. PeopleSoft stock (PSFT) dropped 5-3/4 overnight to 20 in electronic trading after the company released its results. In the quarter, net income rose 54 percent to $44.2 million, or 17 cents per share, exactly in line with Wall Street expectations. Comparatively, the company earned $28.7 million, or 11 cents per share, in the year-ago period. For the year to date, net income was $117.1 million, or 45 cents per share, on revenue of $949.5 million, a steep climb from $68.8 million, or 27 cents per share, on $68.8 million revenue a year ago. "License revenue growth slowed a bit faster than I was looking for," said Rob Kugel, First Albany Corp. analyst. "The market has been getting increasingly saturated and it's harder to get the growth that was once there." Two months ago, Kugel had forecast PeopleSoft licensing growth of 35 to 40 percent. In the 1997 first quarter, PeopleSoft's licensing revenue jumped 90 percent from the year-ago period. The Pleasanton, Calif.-based company also lowered its benchmark for future revenue growth "due to increasing uncertainties in the company's markets attributed to recent global difficulties, continued escalation of competitive intensity and the ongoing overhang in the marketplace associated with the challenges presented by the Year 2000." -- from staff and wire reports cnnfn.com

To: Melissa McAuliffe who wrote (3071)	10/21/1998 11:01:00 AM
From: GJD	Respond to of 4509

Re: stocks dropping on bad news---This is not the first day this stock is gapping down however. It is down from 57 to 19 as the smart money and institutions have anticipated the coming slowdown. This must be the 5th time this stock has gapped down since April. The Co. is still projecting 25-35% conservative growth. Seems like it should move to the high 20s and low 30s to sell at 30x '99 estimates

To: Melissa McAuliffe who wrote (3071)	10/21/1998 11:02:00 AM
From: T-Lo Greens	Read Replies (2) \| Respond to of 4509

If you looked at the action on BMCS, you will notice on the first day after earnings they had an intraday low in the 37's, however ended the day at 42 1/8, then gradually climbed back to yesterday's high of 45 11/16 and settling around 43-44 right now. Regarding PSFT there were some positives in the press release in that revenue growth was outstanding, however licensing growth was below projections. IMHO if a company is kicking ass in revenue growth in this type of global environment, they are doing pretty well regardless of where that revenue comes from.

To: Melissa McAuliffe who wrote (3071)	10/21/1998 11:17:00 AM
From: Tom_	Respond to of 4509

Mutual Fund tax loss selling... Melissa- Elizabeth Mackay of Bear Stearns had a blurb quoted in the opinion section of Barron's a while back in which she indicated that, as a "general rule", mutual funds have until the end of October to take tax losses. And that this year they will do so, "vicious"-ly. This doesn't apply of course to private investors. Chuzzlewit linked to a Dell thread post that copied the blurb. See his #2748, linking to DELL #72059. Some key words, IMO: "once past this point, it may be a good idea to bargain-hunt" depressed areas. PSFT = DA, IMHO. Cheers, Tom