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To: cm who wrote (834)	10/25/1998 3:13:00 PM
From: Dave O.	Read Replies (1) \| Respond to of 2339

I have no position in ITWO. The HWP deal was almost 12% of revenues in Q3. As we head into 1999 wouldn't you rather see more smaller sized deals? If IT budget constraints become tighter deals like HWP could be deferred and it would seem this could severely impact a quarters results. Second, with guidance at $500 million and 10% operating margins that doesn't paint a strong year to year EPS growth. Granted they have to work through things in the next month. But, since shares outstanding decreased this quarter due to options being out of the money, and the fact they've cancelled and granted new options to employees, won't the increased shares outstanding going forward have a dilutive effect? The CC was reasonably bullish but the large deal dependency and current guidance worry me. Dave