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Gold/Mining/Energy : GEAC.....Canadian best kept secret -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (616)	2/15/1999 12:04:00 PM
From: Dale Geffrey	Read Replies (1) \| Respond to of 1571

This hurts, and it doesn't show much hope for the future. Here's the dope: Monday February 15, 10:02 am Eastern Time Company Press Release Geac Announces Preliminary Results for Q3 Fiscal 1999 MARKHAM, ONTARIO--(BUSINESS WIRE)--Feb. 15, 1999--Geac Computer Corpor(TSE:GAC. - news) Geac Computer Corporation Limited today released preliminary results for its third fiscal quarter ending January 31, 1999. Final results will be reported March 9, 1999 as previously scheduled. Revenues for the third quarter were approximately $214 million compared to $174.2 million reported in the third quarter of fiscal 1998. Acquisitions completed since January 31, 1998 contributed approximately $35 million to revenue in the latest quarter. Maintenance revenues, excluding acquisitions, increased approximately $5 million compared to the same quarter last year. Excluding acquisitions, license revenues and related services remained flat compared to the same period in the prior year. Preliminary estimates indicate that net income for the quarter will be in the range of $34 million to $37 million ($0.55 to $0.60 per share) compared to $44.8 million ($0.75 per share) reported in the same quarter last year. ''Clearly, we are disappointed with these results. Geac experienced weak software license sales in Q3, similar to results being reported by most enterprise software companies. We are planning for a weak license sales environment for the next 12 months and are managing our expenses down accordingly'', said Mr. William Nelson, Chairman, President and CEO. ''Among other factors were continued high costs related to Y2K which are now expected to continue for several more quarters and are being expensed as incurred''. More costs than expected are being incurred for client/server products like SmartStream which were originally designed with 4 digit year codes. The client/server environment is inherently complex. Successful operation depends on third party software as well as Geac written software and sometimes on modification or extensions written by customers or outside contractors. Some customers are experiencing problems moving to product releases in which all underlying software is Y2K enabled. Geac is incurring extra cost to provide easier upgrade paths for these customers and to maintain strong customer relationships, which is vital for future maintenance revenues. Geac continues to generate strong cash flows and is well positioned for future acquisitions in generally difficult times for software companies. After repaying the $38 million ($US25 million) installment of its term loan due January 31, 1999 and paying about $5 million for acquisitions in the quarter, cash balances at January 31, 1999 were approximately $230 million. Founded in 1971, Geac is a provider of mission critical enterprise applications, supplying industry specific software to ten vertical markets as well as cross industry administrative applications comprised of financial, human resources and materials management software. Headquartered in Markham, Canada, Geac has more than 90 offices in 16 countries and serves customers in more than 40 countries worldwide. Geac product and service information is available on the World Wide Web at geac.com, or through email at info@geac.com. Geac is a publicly traded company with its common shares listed on the Toronto Stock Exchange (Symbol - GAC). Dale

To: Doug who wrote (616)	2/17/1999 12:14:00 AM
From: dave b	Read Replies (2) \| Respond to of 1571

Hmmm...last year I got whacked with Newbridge and now Geac. Better stay out of those regions. Canadian techs too small? too few products? What really burns my ass is that Geac has had a big, fat SELL written all over it for the last three weeks and I was too complacent to act decisively. Trying to avoid a big tax bill, only selling a partial position and selling covered calls. (Do you think my Feb40's and Mar35s will expire worthless? Gee, I sure hope so!!). Maybe the lousy SAP earnings should have been a big hint. Now where to from here....