Pervasive Software Shares Could Triple

Mark J

Updated · Mar 21, 2011

Pervasive's revenue growth and stock price ebbs and flows with its product release cycles. After two years of hibernation, shares of Pervasive Software (PVSW) are ready to re-launch. As noted in this report on Seeking Alpha, in November, it released the Cloud Edition of Data Integrator version 10. With significant enhancements to its functionality and user interface, this release of Data Integrator is expected to be Pervasive's most significant in 10 years.

“The impact should be significant. Typically, when a software company prepares to release a new version of its software, sales slow for a couple of quarters. Why? Simple — customers will gladly wait a few months to get the latest and greatest features. So, they delay purchases. However, once the new products are released, pent-up demand fuels several quarters of strong sales. Indeed, Pervasive's PSQL sales have been declining for several quarters, so a great deal of pent-up demand has likely built up.

“Taking all of this into consideration, the logical conclusion is that PVSW's sales will pick up again. Consequently, its stock price should also take off.”

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