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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (4386)	3/19/1999 12:05:00 PM
From: VINCENT MALGAPO	Read Replies (1) \| Respond to of 6021

NETA conference call this afternoon with Morgan Stanley Analyst Chuck Phillips according to CBS Marketwatch. Maybe we'll get some answers. Hopefully, good news. Vince

To: Chuzzlewit who wrote (4386)	3/19/1999 12:11:00 PM
From: Just_Observing	Read Replies (1) \| Respond to of 6021

NETA's DSOs have their own characteristics NETA has significant retail sales to individuals and on their web site. These revenues should not have hardly any DSOs associated with them since many of the sales are electronic. For example, Bill Larson claims that there are 50 million retail users of McAfee Viruscan. Virtually every PC comes with VS preloaded. The strategy is to get people to upgrade their software and collect some revenue from that. Even if you assume that only 10% upgrade a year, that works out to be 5 million users upgrading at around $30 each. That works out to be 37.5 million each quarter. Subtract that number from 272 million in the last quarter and we have 234.5 million in revenues which should have legitimate DSOs associated with them. DSOs last quarter were 89 days compared to 91 days in each quarter. That works out to be 267 million in DSOs for a basis of 234.5 million. Now the picture looks a lot worse. I have posted this before and never got a satisfactory answer from anyone. Could someone tell me what's wrong with my analysis?