FOOL PLATE SPECIAL
An Investment Opinion by MF Templar

ProfitMaker 0.61

ADOBE SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADBE)") else Response.Write("(Nasdaq: ADBE)") end if %> shot up $4 1/8 to $39 this morning after the firm reported earnings of $0.61per share, beating consensus estimates by $0.10 per share. The 45% rise in year-over-year earnings per share (EPS) was driven by aggressive cost cutting at the San Jose, California-based software developer. Revenue growth was much more sedate, climbing only 10% year-over-year. Adobe cut production costs substantially, increasing gross margin by roughly 3% to 85%. The company also held investment in research and development at the same level as last year, providing a boost to short-term results but something investors could legitimately question as an investment a software company should make to remain competitive.

Best-known for programs like PageMaker, PhotoShop and Acrobat, Adobe Systems holds consistently dominant market positions in desktop publishing and graphics applications. Until recently, most of these programs were used disproportionately on Apple MacIntosh computers. With the current restructuring going on over at Apple and its concomitant loss in consumer market share, the turmoil has bled into the results of companies like Adobe Systems and MACROMEDIA <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MACR)") else Response.Write("(Nasdaq: MACR)") end if %> that used to sell a lot of software packages for those machines. Even in this quarter Adobe sold only 50% of its total software sales on Windows-based machines, although this was a significant gain over the 31% of total sales that went to Windows-based machines a year ago.

In addition to the turmoil affecting the Apple platform, Adobe completed the acquisition of FRAME Technology last year. Historically, Adobe has always slowed down the year after a big acquisition, with the last example of this being the merger with Aldus. While financial results tend to flag, it is important to recognize that Adobe has staggering market share in the publishing and graphics software packages that have become increasingly important to conducting business both online and in the real world. The attractive franchise is a cash flow machine with substantial equity investments in a number of other software concerns, investments that the company will begin to pass on to shareholders in the form of "venture dividends" starting this quarter. With stakes in companies like NETSCAPE <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NSCP)") else Response.Write("(Nasdaq: NSCP)") end if %>, AMERIQUEST <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AQS)") else Response.Write("(NYSE: AQS)") end if %> and VERITY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VRTY)") else Response.Write("(Nasdaq: VRTY)") end if %>, this news alone seems pretty exciting for shareholders.

UPS

SPRINT <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FON)") else Response.Write("(NYSE: FON)") end if %> gained $2 3/8 to $45 1/2 on rumors that British telecom company CABLE & WIRELESS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CWP)") else Response.Write("(NYSE: CWP)") end if %> will make a bid for the number-three American long-distance company and wireless communications provider. LCI INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LCI)") else Response.Write("(NYSE: LCI)") end if %> also gained $1 1/8 to $18.

MCI COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MCIC)") else Response.Write("(Nasdaq: MCIC)") end if %> is up $ 1 3/4 to $38 5/8 due to merger partner BRITISH TELECOM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BTY)") else Response.Write("(NYSE: BTY)") end if %> advancing on the London Stock Exchange and the possibility of a deal with Spain's Telefonica, which might give the company excellent reach in Latin America.

Semiconductor design software company AVANT! <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AVNT)") else Response.Write("(Nasdaq: AVNT)") end if %> gained $3 5/8 to $28 3/8 after a court denied a request from CADENCE DESIGN SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CDN)") else Response.Write("(NYSE: CDN)") end if %> to enjoin the company's sale of systems that Cadence has alleged contain stolen intellectual property.

Circuit board manufacturer JABIL CIRCUIT <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: JBIL)") else Response.Write("(Nasdaq: JBIL)") end if %> added $4 1/4 to $43 7/8 after reporting Q2 EPS of $0.58, beating estimates of $0.47, on revenues of $222 million.

YAHOO! <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: YHOO)") else Response.Write("(Nasdaq: YHOO)") end if %> gained $2 to $24 5/8 after announcing a strategic business alliance with NETSCAPE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NSCP)") else Response.Write("(Nasdaq: NSCP)") end if %>.

DOWNS

Pharmaceutical development company ORAVAX <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ORVX)") else Response.Write("(Nasdaq: ORVX)") end if %> lost $3 to $3 1/2 on reporting disappointing Phase III results on nosedrops intended to prevent certain respiratory tract infections in infants.

ASCEND COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %> lost $6 1/4 to $41 7/8; 3COM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: COMS)") else Response.Write("(NYSE: COMS)") end if %> fell $2 7/8 to $30 7/8; CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> dropped $2 1/2 to $47 7/8; U.S. ROBOTICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: USRX)") else Response.Write("(Nasdaq: USRX)") end if %> slid $4 1/8 to $52 5/8; SUN MICROSYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SUNW)") else Response.Write("(Nasdaq: SUNW)") end if %> fell $1 5/8 to $26 1/2; and CABLETRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CS)") else Response.Write("(NYSE: CS)") end if %> lost $1 3/8 to $28 after 3Com CEO Eric Benhamou told Bloomberg that the industry is having a slow quarter as customers "grappled with new technology choices."

Benhamou's comments also hit VIDEOSERVER <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VSVR)") else Response.Write("(Nasdaq: VSVR)") end if %>, which fell $1 5/8 to $21 1/4, and communications chip company VITESSE SEMICONDUCTOR <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VTSS)") else Response.Write("(Nasdaq: VTSS)") end if %>, which lost $2 5/8 to $22 3/8. xDSL networking company PAIRGAIN TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PAIR)") else Response.Write("(Nasdaq: PAIR)") end if %> was also hit for a $2 5/8 loss to $22 1/2.

Mask pattern generation company ETEC SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ETEC)") else Response.Write("(Nasdaq: ETEC)") end if %> lost $2 1/8 to $30 3/4 after announcing its acquisition of German-based Ebetech Electron-Beam Technology GmbH.

Graphics chip company TRIDENT MICROSYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TRID)") else Response.Write("(Nasdaq: TRID)") end if %> fell $3 7/16 to $14 7/16 after Hambrecht & Quist downgraded the shares to "buy" from "strong buy." That firm also lowered OAK TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: OAKT)") else Response.Write("(Nasdaq: OAKT)") end if %>, which fell $1 1/8 to $10, citing the same reason of "limited upside" that was given in the company's downgrade of SOLECTRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLR)") else Response.Write("(NYSE: SLR)") end if %> yesterday.

LEXMARK INTERNATIONAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LXK)") else Response.Write("(NYSE: LXK)") end if %> lost $3 3/4 to $24 after the printer and component manufacturer said Q1 revenues will fall below estimates but that earnings will meet analysts' estimates, the average of which stands at $0.40 per share.

Price worries and the K-6 threat have all three major manufacturers of Intel-compatible CPUs moving lower today. INTEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> lost $3 7/8 to $132 7/8; ADVANCED MICRO DEVICES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AMD)") else Response.Write("(NYSE: AMD)") end if %> is down $4 5/8 at $37 1/4; and CYRIX <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CYRX)") else Response.Write("(Nasdaq: CYRX)") end if %> shed $1 7/8 to $20 3/8.

PAN AM CORP. <% if gsSubBrand = "aolsnapshot" then Response.Write("(AMEX: PAA)") else Response.Write("(AMEX: PAA)") end if %> lost $1 3/8 to $10 after the Miami Herald reported today that the airline has revived talks to acquire vacation-destination airline Carnival Air Lines, expanding Pan Am's fleet four-fold.

CONFERENCE CALLS

ADOBE SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ADBE)") else Response.Write("(Nasdaq: ADBE)") end if %>
available until 3/20
(800) 633-8284 (reservation # 2508068)

TRO LEARNING <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: TUTR)") else Response.Write("(Nasdaq: TUTR)") end if %>
(402) 220-2139 (code: 3137) -- replay until 3/19

ROSS STORES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ROST)") else Response.Write("(Nasdaq: ROST)") end if %>
(402) 222-9948 -- replay available through 3/25

SEPRACOR INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SEPR)") else Response.Write("(Nasdaq: SEPR)") end if %>
To Discuss Results of levalbuterol Phase III results
Available until 8 PM on Wednesday, March 19
(402) 220-1011

FOOL PORTFOLIO STOCKS

FOOL PORTFOLIO               BORING PORTFOLIO
ATCT down $1/8 at $7         ATLS up $3/8 at $22 3/4
AOL down $2 1/8 at $40 5/8   BGP up $1/8 at $41 5/8
CHV up $5/8 at $67 1/2       CSL unch. at $31 1/2
COMS down $2 5/8 at $31 1/8  CSCO down $2 1/4 at $48 1/8  
GM down $3/8 at $56 3/8      GNT up $1/8 at $36 1/8
IOM unch. at $14 3/4         ORCL down $1 at $39 1/2
KLAC down $2 3/8 at $36 1/8  OXHP down $1/8 at $59 1/2
LU down $1 5/8 at $50 5/8    PMSI  down $3/8 at $11 1/8
MMM down $1/8 at $89 3/8     TDW up $5/8 at $45 1/4
T down $1/4 at $35 1/8