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Technology Stocks : MWAV-M WAVE COMM

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To: Bob who wrote (224)4/25/2000 10:40:00 PM
From: Tom Hua   of 443
 
bobp, management has the habit of low balling their estimates of top and bottom line. In any case, the net income last quarter was 3.1% of revenue. The CFO's guidance for next quarters for operating income between 6-9%, net income between 3-6%. I think we'll see net income better than 6% not only because of their conservative guidance, but also they just hired a materials engineer whose primary function is to lower the cost of goods.

I also think their FY2000 revenue will exceed $30 million. They reported $5.4 mil for Q1, the CEO guided higher revenue for Q2, and revenues in Q3 and Q4 are expected to be the strongest of the year. Taking $30 million and 6% net income, we're looking at net income of $0.8 per share this year compared to a loss last year.

The last time (1994-95) the company had this kind of performance in top and bottom lines, stock was trading at the equivalence of $33/share.

Regards,

Tom
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