STOCKREPORTS

The Vantive Corporation

NASDAQ Symbol VNTV In S&P SmallCap 600

Recent Price 34.50 52 Wk Range 36.63 - 15.25

Yield Nil 12-Mo. P/E 73.4

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BULLISH since 05/97 Rel. Strength Rank (1 Lowest - 99 Highest) 94 Insider Activity Neutral

Business Profile 11-JUL-97

Vantive continues to see strong growth in the customer asset management market and it is optimistic about prospects for the remainder of 1997. The substantial revenue growth reported for the first quarter of 1997 reflected a combination of accelerated customer growth and the continued shift in the market toward the integrated customer asset management strategy. During the quarter, Vantive added 66 new accounts, increasing its total customer base to 375. Nearly half of these new customers purchased more than one application, demonstrating the importance of the integrated customer asset management strategy. Growth in 1997's first quarter was also aided by the continued expansion of VNTV's field sales service, which grew over 30%.

Operation Review 11-JUL-97

Total revenues for the three months ended March 31, 1997, advanced 108%, year to year, on a 112% gain in license revenues and 101% higher service revenues. The increase in license revenues stemmed from the market's growing acceptance of the company's products, and the higher service revenues reflected an increase in consulting post-contract support, and, to a lesser extent, training services related to higher sales of the company's applications. Profitability improved and pretax income was up 138%. After taxes at 37.0%, versus 20.0%, net income rose 87%, to $2,549,000 ($0.10 a share) from $1,360,000 ($0.05, adjusted).

Stock Performance 18-JUL-97n

In the past 30 trading days, VNTV's shares have increased 22%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 475,900 shares, compared with the 40-day moving average of 428,897 shares.

Key Stock Statistics

Fiscal Year Ending Dec. 31

Business Summary 11-JUL-97

Vantive Corp. is a leading provider of customer asset management applications software that enables businesses to attract, acquire, retain, and leverage customers by automating marketing and sales, customer support, defect tracking, field service and internal help desk functions. These tightly integrated customer asset management applications, called the Vantive Enterprise, are based on a multi-tiered client/server architecture and a common data model. Vantive's customer asset management applications may also be used through a Web-based browser, thereby providing the applications directly to the end-user outside the boundaries of the business. The software can be used independently or as part of an integrated, enterprise-wide customer asset management information system.

The company believes that businesses implementing a customer asset management information system can better manage customer relationships by leveraging valuable customer information that is shared throughout the organization. VNTV's software applications have been deployed by businesses in a wide range of industries, including software, communications, consumer products, finance, outsourcing/services, personal computer hardware, health care, manufacturing, medical projects, public sector/regulated industry, online services, consumer goods and retail.

Vantive Sales (introduced by the company in early 1995) is a software application for automating the entire sales and marketing process. It can automate campaign lead qualification and tracking, Web-enabled lead and opportunity management, pipeline management, scheduling and contact management, account and territory planning, distribution channel management, sales forecasting and fulfillment.

The company's first product, Vantive Support (July 1992) is an application for automating and managing a customer support center. It supports activities such as product support, consumer affairs and complaint management. Vantive FieldService (early 1996) is an application for managing the allocation, scheduling and dispatching or resources, including parts and materials, to perform services or complete work orders to solve customer problems at their site.

Vantive Quality (fall of 1993) is an application for collecting, distributing, tracking and maintaining information about products. Vantive HelpDesk (August 1994) is an internal help desk application that logs, tracks and assists in handling employee problems, issues, complaints, suggestions and requests for assistance with technology, human resources and facilities.

The company markets and sells its software and services in the United States mainly through a direct sales organization. Outside the U.S., it markets its products through wholly owned subsidiaries and independent distributors. International revenues accounted for about 9% of total revenues in 1996.

Capitalization

Long Term Liabilities: $725,000 (3/97).

Curr. Ratio	2.8	4.4	2.2	NA	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	0.9	2.1	9.1	NA	NA	NA	NA	NA	NA	NA
% Net Inc.of Revs.	17.0	8.2	NM	NM	NA	NA	NA	NA	NA	NA
% Ret. on Assets	23.5	9.7	NM	NM	NA	NA	NA	NA	NA	NA
% Ret. on Equity	33.0	21.5	NM	NM	NA	NA	NA	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--2455 Augustine Drive, Santa Clara, CA 95054. Tel--(408) 982-5700. Pres & CEO--J. R. Luongo. Chrmn--R. J. Sippl. CFO--Kathy A. Murphy. Dirs--A. Bhusri, W. K. Davidow, K. G. Hall, J. R. Luongo, R. L. Ocampo Jr., P. A. Roshko, R. J. Sippi. Transfer Agent & Registrar--Harris Trust Co. of Calif., Los Angeles. Incorporated--in Delaware in 1995. Empl-- 0. S&P Analyst: J. J. Schemitsch

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997