SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Aladdin Knowledge Systems (ALDN)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: FrLR who wrote (85)8/7/1997 1:05:00 PM
From: Dr. J   of 351
 
Yep. See my post #82.

I talked to the CFO this morning for some clarification of the conference call. The most interesting thing is that the blips in margins (R&D and G&A) were temporary, and should settle back down to Q1 type levels in absolute terms. S&M may grow a little.

Also, Q3 is historically weak (because the s/w industry is generally weak in Q3) . Q4 should be good, because they are expecting to ship $500K of ASE (the Smart Card product).

Finally, the beneficial tax rate (6%) in Q1 and Q2 probably won't last; the CFO suggested 10% was a better long term number to use.

In comparison to Aladdin's great quarter, Rainbow (the #1 in the industry) only grew their s/w protection business by 8%. Looks like they are not very focused on it at the moment.

All in all, my spreadsheet suggests earnings of 89c this year, which could justify a price of $22 in early 1998, so I agree with your predictions. Plus, there is big upside from the Smart Card business is ASE is successful.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News