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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (12141)	10/22/1998 8:08:00 AM
From: Rusty Johnson	Read Replies (1) \| Respond to of 14631

Wall Street Journal Interactive Edition interactive.wsj.com Chairman and Chief Executive Officer Bob Finocchio chalked up the company's revenue growth to the company remaining "very focused" on the high-performance end of the database market. Areas such as online transaction processing, data warehousing and electronic commerce are driving sales, he said. "I remain convinced [the high-end database market] is very good market," Mr. Finocchio said. "In units, growth has never been higher." In contrast, competitors such as Oracle Corp. and Sybase Inc. have broadened their product focus into areas beyond high-end databases. Oracle, for example, also sells enterprise-resource-planning software, while Sybase has been targeting the market of mobile, embedded databases. Informix's third-quarter product revenue growth is in sharp contrast to Sybase's results. Sybase said its database server product sales fell to $71 million, down from $93 million in the year-ago quarter. Mr. Finocchio said he is "feeling pretty good" about the 21 cents consensus estimate for 1998. He declined to comment on expectations for 1999. The company's acquisition of Red Brick Systems Inc. is on schedule to be closed by year end, Mr. Finocchio said. In October, Informix signed a definitive agreement to acquire Red Brick, which develops data warehousing software, in a stock swap valued at $35 million. Red Brick, on a revenue run-rate of $35 million, is expected to be neutral to 1999 earnings, Mr. Finocchio said. Informix has been on a turnaround mission, following Mr. Finocchio's replacement of former CEO Phillip White, who resigned July 1997. The company had been under a cloud when it ran into accounting troubles and overstated its revenue between 1994 and 1996. Its stock was almost delisted from the Nasdaq Stock Market following its disclosure in August 1997 that it would have to restate revenue and profit. Best of luck.