Veritas Software (VRTS
Analyst Wendell Laidley says Q1 results were slightly above estimates and he notes that OEM channel revenue remained strong. Still, the storage-management software provider suggested future contribution might experience a moderate drop.
Also, sales were distributed evenly in the U.S. and abroad, but U.S. market has become more challenging. Laidley cut the $1.789 billion 2001 revenue estimate to $1.675 billion, and cut the $0.90 2001 EPS to $0.84 on visible weakness in the OEM channel and signs of reduced closure rates in Veritas's direct salesforce. Laidley reiterates his strong buy on the company's solid fundamentals, but cut the $170 target to $85.