I have now had an opportunity to review TransNet's 10-Q for the most
recent quarter, and I see nothing that raises any concerns in my mind and several things which are generally positive. Although I had
projected somewhat higher revenues for the quarter, the shortfall once again occurred in the low-margin Hardware & Software segment of their business. As a result, overall gross profit was only slightly below my earlier projection for the quarter.
Net interest expenses were substantially lower because the Company
reduced its dependence on debt to support inventory. Net income was
even closer to my projections and EPS rounded up to meet my target of
$.06 per share.
As a result, I am currently projecting the following results by quarter
for 1997:
Projected Actual -------- Projected --------
Year 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
------ ------- ------- ------- -------
Revenue (000) $77,685 $16,539 $19,232 $20,382 $21,532
Earnings/Share $ 0.27 $ 0.06 $ 0.06 $ 0.07 $ 0.08
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