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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (39702)	12/18/1998 12:19:00 AM
From: Richard Gibbons	Respond to of 132070

Yeah, that's a good point that there is upgrade revenue after the initial sale of the ERP system. The chance of PSFT's revenue declining in a big way next year is pretty small. However, PSFT isn't KO or INTC, so investors probably won't be overjoyed if revenue or income stays constant. So I would estimate that right now, PSFT is fairly valued if it has, say, 15-20% income and revenue growth over the next few years. Thus, the question I have is: is the sum of the upgrade revenue and any new business sufficiently great to provide revenue and income greater than 15%-20%? (My guess is a mild "yes", but not enough to bet on it; there are other guesses in which I have more confidence.) Richard