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Technology Stocks : Enterprise Informatics -- Ignore unavailable to you. Want to Upgrade?

To: Senor VS who wrote (2943)	12/7/1998 9:51:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 13797

don't know about jdes but, in general, some analysts are saying Y2K will impact ERP spending.; others are saying smaller, vertically targeted companies will do better than the big ERP (the JBOPs); some are saying SCM (Supply Chain) and some other ERP functions are so important to competitiveness cost efficiency that no one can afford to wait. I would say find out what went wrong and if you think WS has overacted buy some.

To: Senor VS who wrote (2943)	12/8/1998 10:51:00 AM
From: Greg h2o	Read Replies (1) \| Respond to of 13797

<<OT-Ravi>> This might answer your question about JDEC. Although Q4:98 was a good quarter for JDEC, nonetheless, we had been expecting even greater upside, especially in software license revenues – where software license revenues came in at 47% of total revenues versus our 49% projection. The upside in software license revenues was constrained by weakness in Latin America and Asia-Pacific markets (due to adverse economic conditions) where revenue growth declined by 3% year over year versus 31% year over year growth in Q3:98. Therefore, most of the top line upside came in services revenues. Consequently, operating margins came in lower than expected, thereby limiting the magnitude of EPS upside. JDEC derived 18% of software license revenues from non-AS/400 platforms, which was slightly lower than the 20% metric in Q3:98. Although this trend may worry some investors, we believe the dip is largely a non-issue and 2-4% variances should be expected in the early stages of the OneWorld roll out. Management emphasized that pipeline visibility appeared good over the next six months. This represents a change from the past where the company has historically maintained good pipeline visibility over a nine-month period. This is somewhat explained by the earlier comment that sales cycles were undergoing a contraction. Simply put, even six-month visibility into the pipeline should be viewed as a positive, especially measured against major enterprise software application companies, notably SAP and PeopleSoft. We believe management may have unintentionally spooked some investors with the visibility issue.