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Technology Stocks : Genesys Telecommunications (GCTI) -- Ignore unavailable to you. Want to Upgrade?

To: Jay Nitschke who wrote (174)	3/3/1999 3:46:00 PM
From: Jay Nitschke	Read Replies (1) \| Respond to of 220

From Robertson Stephens: On March 2, 1999 at the CT Expo in Los Angeles, Genesys announced major product enhancements, further differentiating the Genesys Suite, in our view. Genesys Internet Suite builds on Genesys email handling capabilities and provides real time chat, co-browsing, call back and call through for call center representatives and remote customers. Workforce Manager enables call center managers to forecast demand and schedule resources by skill level, as well as analyze performance and quality of service. Workforce Manager is expected to be generally available in the current quarter. In our view, these new products mark steady progress in Genesys continuing effort to maintain its lead as the most media-agnostic and management-friendly contact center solutions vendor. Our checks with salespeople, customers and management make us very comfortable that the March quarter is tracking well for Genesys, and we are very comfortable with our estimates of $35 million in revenue and $0.17 EPS. We reiterate our Buy on Genesys and remind investors that the company has beaten expectations every quarter since its IPO. Our call is based on several factors including (1) the company's leading product set, with its comprehensive management, reporting, distribution, and multi-media capabilities, (2) the one of the most leveraged distribution channels, and (3) its large and rapidly growing installed base, and (3) an increasingly seasoned management team. These assets make Genesys the leader, in our view, of the enterprise CTI market, which continues to enjoy robust growth and increasing visibility. Regarding valuation, we believe that the shares are extremely attractive at current levels. The stock trades at 15.8x our F2000 EPS estimate and less than 2.2x our F2000 revenue estimate. At the same time, we look for the company to continue to grow its top line at more than 60% and its bottom line at more than 120% year over year, longer term. We believe that these metrics make the shares of Genesys a compelling investment opportunity at this time.