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Technology Stocks : Aspect Telecommunications (ASPT)
ASPT 0.00010000.0%Oct 22 9:30 AM EST

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To: JAPG who wrote (1403)8/19/1999 9:59:00 AM
From: JAPG   of 2018
 
Q3 consensus earnings estimate can be beaten

The EPS consensus estimate for Q3 is -0.17. I have been working the numbers and IMHO this consensus can be beaten. Let me explain:

An increase in product sales above 12% from Q2-99 will beat the EPS consensus estimate. Assuming the following:

- 0% increase in customer support revenue vs. Q2-99
- Same product and customer support margins as for Q2-99
- Same operational expenses as for Q2-99

Remember that product revenue grew 26% in Q2-99 vs. Q1-99. I believe that, with the latent demand in the installed base for the CRM portal,ASPT should grow better than 12% in product revenue growth for Q3-99. It is key for Q3 to keep costs in check!!!

This is just my opinion. Make your own DD before making an investment decission of any kind.

Regards

JAPG
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