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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play -- Ignore unavailable to you. Want to Upgrade?

To: Adam Nash who wrote (406)	4/22/1999 4:51:00 PM
From: Technologyguy	Respond to of 522

Visio surges as growth rate picks up By Brenon Daly, CBS MarketWatch Last Update: 4:07 PM ET Apr 22, 1999 Tech Report NEW YORK (CBS.MW) -- Shares of Visio surged 19 percent Thursday after the maker of diagramming software reported strong earnings and said growth should accelerate for the next year. The Seattle-based company said it earned 34 cents per share, 2 cents more than analysts expected for its fiscal second quarter. Sales increased 28 percent to $99.5 million. The company also reported it now has an installed base of 3 million users. The company's stock gained 4 1/4 to 27, helped by a Pacific Crest upgrade. Trading hit 2.6 million shares, compared to an average daily volume of 620,000. "It was a strong quarter for us," company's chief financial officer Steve Gordon said in an interview. "We did well in all areas we expected, and even in one area where we didn't really expect -- Asia." Soft sales in Asia snagged the company in the previous quarter, causing the stock to drop. In its fiscal second quarter, Visio increased international sales -- which account for about 15 percent of total revenue -- about 9 percent. The overall growth rate for this quarter, which ends in June, will slightly outpace the 28 percent the company recorded in the just-completed quarter. But the company will push the level to a 40-percent rise in the quarter that ends in September, Gordon said. The reason -- the pending release of Visio 2000, which is "on track" for the September quarter. Gordon said he didn't expect any hiccup as the company shifts its sales to the new product. He projected 11 to 13 percent of the current users, mostly individuals, will upgrade to Visio 2000 within 15 months. Further, Gordon said he didn't expect problems from the so-called Year 2000 glitch that has snagged other companies. Many other software makers have reported slower-than-expected growth as businesses slow purchases of new software as they make sure their existing software will work in the new millennium. Unlike some other vendors, Visio sells lowered-priced software. "In most cases the CFO doesn't have to sign off" on a Visio order, Gordon said.