Credit Suisse Disruptive Technology Portfolio: RightNow Lowers Cash Flow Forecast And Loses Top Sales Exec
An index of companies shaking up traditional business models.RightNow Technologies' stock had the biggest move of the Disruptive Technology Portfolio companies after management said it expects cash flow to be 30% to 50% less this year than previously estimated, pushing the stock down almost 15% in the week. Management blamed shorter contracts--down to 20 months from about 30--resulting from a new sales compensation plan. RightNow is transitioning to a completely subscription-based model, and incentives were too heavily weighted to first-year cash collection.
The earnings conference call included news that Jay Rising, head of field operations, resigned. Rising, who joined the CRM vendor from ADP in October, was never fully content with his role at the company and decided to resign, management said. RightNow's 1Q results were slightly above expectations, but the cash-flow shortfall and Rising's resignation overshadowed that.
Overall, the 29-stock portfolio grew 0.9% compared with the S&P 500, which grew 1.6%. Sixteen stocks in the index ended in positive territory, while 13 declined.
| Disruptive Technology Portfolio |
| |
|
Stock Price
4/25/07 |
% Change
Weekly |
% Change
Year To Date |
| AAPL |
Apple Computer |
$95.35 |
5.5% |
12.4% |
| BIDU |
Baidu.com, Inc. |
$104.68 |
5.7% |
-7.1% |
| BBBB |
Blackboard |
$33.77 |
1.9% |
12.4% |
| BRCM |
Broadcom |
$34.29 |
3.9% |
6.1% |
| CNQR |
Concur Technologies |
$18.20 |
0.4% |
13.5% |
| CRM |
salesforce.com |
$42.58 |
0.6% |
16.8% |
| CTSH |
Cognizant Technology |
$89.58 |
2.0% |
16.1% |
| DRIV |
Digital River |
$56.47 |
1.4% |
1.2% |
| EBAY |
Ebay |
$33.77 |
-2.0% |
12.3% |
| GOOG |
Google Inc. |
$477.99 |
0.4% |
3.8% |
| INFY |
Infosys |
$53.59 |
-2.1% |
-1.8% |
| KNXA |
Kenexa |
$29.37 |
-8.5% |
-11.7% |
| MFE |
McAfee |
$29.67 |
1.6% |
4.5% |
| MRVL |
Marvell |
$16.75 |
-2.5% |
-12.7% |
| NOVL |
Novell |
$7.15 |
-3.4% |
15.3% |
| NSR |
Neustar |
$28.84 |
-0.4% |
-11.1% |
| NVDA |
Nvidia Corp. |
$33.11 |
6.5% |
-10.5% |
| RHT |
Red Hat |
$22.14 |
-2.5% |
-3.7% |
| RIMM |
Research in Motion |
$135.53 |
0.9% |
6.1% |
| RNOW |
RightNow Tech |
$15.20 |
-14.8% |
-11.7% |
| TLEO |
Taleo |
$15.89 |
-5.5% |
16.2% |
| TIBX |
TIBCO, Inc. |
$9.60 |
2.3% |
1.7% |
| TXN |
Texas Instruments |
$35.34 |
10.6% |
22.7% |
| ULTI |
Ultimate Software |
$26.83 |
-0.6% |
15.3% |
| VRSN |
Verisign |
$26.98 |
1.1% |
12.2% |
| WEBX |
WebEx Communications |
$56.74 |
-0.2% |
62.6% |
| WIND |
Wind River |
$10.12 |
0.1% |
-1.3% |
| WIT |
Wipro |
$16.49 |
-1.0% |
2.1% |
| YHOO |
Yahoo! Inc. |
$28.06 |
-0.9% |
9.9% |
| |
DTP Index Value |
$262.76 |
0.9% |
5.5% |
| SPX |
S&P 500 |
$1,495.42 |
1.6% |
5.4% |
© 2007 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing [email protected] or calling 1-877-291-2683.
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