CS First Boston Cuts Informatica to 'Buy'

Analyst says the software firm's newest forecasts fall below his estimates, and he's concerned about a steep drop in license revenues

CS First Boston downgraded Informatica (INFA ) to buy from strong buy.

Analyst Wendell Laidley says the company's forecast falls below his estimate and the consensus estimate of $0.06 EPS. He also says Informatica's revenue forecast is below his $57 million estimate. Laidley notes Q2 license revenues are likely to be about $28 million vs. his $37 million estimate, implying a relatively steep drop of sequential growth from Q1 license revenues of $35 million. He says the license shortfall reflects international weakness, centered in Europe and especially Germany.

Laidley notes the company declined to give forward guidance at this time. Based on his input to date, he cut his $236 million 2001 revenue estimate to $202 million and cut the $0.26 2001 EPS estimate to $0.04.

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