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Technology Stocks : Sapiens International Corporation (SPNSF): Turn around...? -- Ignore unavailable to you. Want to Upgrade?

To: uu who wrote (1797)	10/28/1998 8:16:00 PM
From: ftmp	Respond to of 1936

Addi, when H&Q up-grade, time to sell.

To: uu who wrote (1797)	10/28/1998 10:02:00 PM
From: Lucci	Respond to of 1936

Addi, Seems we've been here before. Looks familiar doesn't it? I sold today at around $7.00 ..... I'll be back though. :) Mike

To: uu who wrote (1797)	10/29/1998 12:20:00 PM
From: Joseph Strohsahl	Respond to of 1936

FROM: Hambrecht & Quist Sapiens Reports Strong Third Quarter Results. Growing Demand For Euro Solutions Poised to Deliver Upside. Reiterate STRONG BUY Hambrecht & Quist Sheila B. Ennis October 29, 1998 Synopsis Sapiens reported strong third quarter results, with revenues growing over 75% and operating income up over 135%. Revenues of $18.9 million and earnings of $0.12 were well ahead of our $16.9 million and $0.08 estimate. Importantly, non-Year 2000 sales grew roughly 33% in the quarter. This not only serves as testament to the underlying strength and longevity of the business, but speaks to the global trend among companies worldwide to outsourcing mission-critical development needs -- a trend we expect will fuel accelerating demand for Sapiens' solutions. Factory productivity increased 50% in the quarter to 120k lines of code per employee per month. This metric is critical in assessing Sapiens' ability to execute on its ever growing stockpile of Year 2000 backlog and this 50% sequential improvement is tracking well-ahead of our expectations. As we've highlighted in our previous reports, the Sapiens Euro solution is currently in pilot stages with several substantial customers and we believe will be the source of considerable upside as these customers move from pilot project to full implementation over the next several quarters. We are raising both our fourth quarter and fiscal 1999 estimates to reflect the growing strength of the business. We have raised our fiscal 99 revenue estimate 5% to $86 million and our earnings expectation roughly 10% to $0.56. With the core business growing over 30% in the quarter and the Euro solution experiencing ramping demand, we believe our new numbers, which reflect 25% growth, remain conservative. Recommendation We reiterate our STRONG BUY rating on Sapiens. Our new calendar 1999 expectations call for 25% sales growth and over 38% earnings growth as operating margins continue to expand. With shares trading at a meager 12 times our conservative calendar 1999 earnings estimate of $0.56, we believe the stock is significantly undervalued relative to the opportunity.

To: uu who wrote (1797)	10/29/1998 1:06:00 PM
From: High-Tech East	Read Replies (1) \| Respond to of 1936

TO ALL ON SPNSF: I apologize. I should have sent Addi a private message, but I was so excited, I sent it the fastest way I could. Ken Wilson aka High-Tech East Addi, do you believe this? To: +twister (11415 ) From: +twister Thursday, Oct 29 1998 11:55AM ET Reply # of 11469 i made a pact with some people on this thread some months ago that if I felt that I was wrong about sunw, i would say so on this thread. Let me tell you that I was wrong about the timing of my assesment of the sunw competitive position in the following ways. 1) I underestimated the extent that msft would mislead everyone on WIN2000 Enterprise Edition being out and available. I guess they are over a year behind even their revised schedules. (not that they need the thing out - i did!) 2) I underestimated the time it would take INTC to deliver on IA64. This window was also missed terribly , probably by a year or more. 3) I overestimated the UNIX competitive challenge to sunw from HWP, DEC, and IBM. They have not executed and SUNW has executed flawlessly. I am disappointed in HWP (mostly) and IBM for really dropping the ball. Now they are playing catch up. having said all that, I want to say my basic thesis, that sunw is painting themselves into a LONG TERM corner with their technology and financial road map is intact. The timing of this has been pushed out due to the factors I stated above. I originally felt two years ago that the problems with their model would become evident within 12 to 18 months. That was wrong. I now feel that the problems with their model (strategic and financial) will become evident within 9 to 18 months FROM TODAY. Win2000 EE must come out and ia64 must come out before sunw's model is inevitably damaged. In the meantime, I must congradulate those who remained bullish on sunw over this time frame on your recent market winnings. I have been wrong and I need to admit it. However, I haven't wavered from my long term opinion that SUNW will have problems down the road due to a changing competitive landscape. Take that for what it's worth and best of luck to all.