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To: Roads End who wrote (52957)	3/12/1999 8:53:00 AM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

Gloom... didn't analysts lower their rev estimates from something like 10b to 9.7 or 9.8b after EM's comment? How can they do this without specific guidance? Can you do that and be that specific with a simple "soft" comment. Something fishy here. Doom

To: Roads End who wrote (52957)	3/12/1999 8:57:00 AM
From: Kenya AA	Respond to of 97611

Steve:In general it is a lot easier to manipulate the bottom line than it is the top line so improving bottom line numbers without the accompanying top line growth is very suspect. That's why some very smart people look Price/Sales rather than Price/Earnings ratios. K

To: Roads End who wrote (52957)	3/12/1999 9:09:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Riechers: Mason said that top line sales slowdown in sales would cost 1 cent off CPQ's bottom line targets, unless it was compensated by increased sales in Feb/March. The possible 2 cents cost of the Brazilian currency was not off the top, but off the bottom line and was not related to volume of sales. The company said it was not guiding analysts to reduce their original estimates. Actually, given what we know, it is conceivable that top line sales will be softer. WS is prepared for this by market surveys. So I think renewed emphasis will be put on the bottom line - to see how companies can continue to grow profits in this climate. CPQ ought to have the advantage if its diversification story works out. No doubt its bottom line will be helped by further cost-cutting and efficiences from the merger as well as tax credits.