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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 (3313)10/28/1998 2:02:00 PM
From: Tom Smith  Respond to of 4509
 
Melissa,

Yes, you read the 11% correctly. Although it is a big drop from prior
estimates of around 40%, it makes sense given the 25-35% growth
guidance for top-line revenues in 1999.

If you use the following table of revenues in $millions, you can plug
in whatever growth estimates you want for any two of: total revenues,
licenses, and services. Based on the two you plug in, the third one
results. In this example, I've plugged in 30% total growth and 44%
services growth. The result is 11% license growth.

Q3-98 12 month projection
Licenses 147 163 (11% growth) <-- result
Services 204 293 (44% growth) <-- plug
---- ----
Total 351 456 (30% growth) <-- plug

Tom