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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?

To: Randy Ellingson who wrote (2891)	4/7/1999 7:29:00 PM
From: diana g	Read Replies (1) \| Respond to of 3115

diana thought this might be interesting to you folks----- cbs.marketwatch.com More 'millennium bug' weakness Software stocks slip as concerns rattle industry By Brenon Daly, CBS MarketWatch Last Update: 4:24 PM ET Apr 7, 1999 Movers & Shakers Earnings Surprises NEW YORK (CBS.MW) -- Software companies' shares in the U.S. stock market slipped Wednesday as investors worried that more companies will report weaker-than-expected first quarter earnings. The concern comes after Network Associates warned it will earn 30 to 32 cents per share, compared to analysts' expectations of 48 cents. Shares of the maker of security software (NETA) fell 27 percent; the company has seen more than $4 billion in market capitalization over the past month. See related story. Earlier in the week, rival Axent Technologies (AXNT) warned it will post an unexpected loss. See Screamers and Earnings Surprises. Both of those companies blamed some of their difficulties on a slowdown in customer spending ahead of the Year 2000. Many businesses are concentrating on making sure their current software will function in the new millennium before adding more programs. This week's shortfall at both Axent and Network Associates figured into a downgrade of fellow maker of security software, Check Point (CHKP). ING Baring Furman Selz analyst Todd Raker lowered his rating on the Israeli company to "hold" from "buy." Shares of Check Point dropped 3 3/8, or 11 percent, to 26 3/4. The Goldman Sachs Software Index slipped 3.5 percent to 241. Although investors thought the need to secure networks would over-ride the "millennium bug" concerns, "maybe the sectors aren't as immune as we thought," Raker said. In addition to security software, makers of other types of software also had a rough day. Shares of Rational Software (RATL) dropped 3 3/8, or 12 percent, to 24. Rational makes software that helps users write programs more quickly. Siebel (SEBL), which makes software to automate the sales process, saw its shares drop 5 1/2, or 13 percent, to 36. Software testing company Mercury Interactive (MERQ) fell 8 13/16, or 25 percent, to 27 1/8. Compuware (CPWR) slid to a new 52-week low, dropping 2 1/16 to 17 13/16. The meltdown in various software stocks follows a rough time in the makers of big-ticket software. Baan (BAANF), PeopleSoft (PSFT) and SAP (SAP) are all at lows for the past year. Shares in Oracle (ORCL), which reported lower-than-expected results in mid-March, dropped 2 1/4 to 21 7/16. ---------------------------------------