Re: Earnings
>>>If on Monday, Syquest shows another loss that's what the market expects it. The real story will be revenues. Will revenues climb dramatically?? If yes, I see a short runup on the stock. If revenues are marginal, then I'll see a sharp selloff.<<<
Stephen, Gauging the reaction to Monday's earnings will be difficult.
The company said it expects to report increased revenue and reduced losses over both the previous quarter and last year's comparable quarter. (Q2, FY97), SyQuest reported a net loss of $33.7 million on net revenues of $16.8 million, and in (Q3, FY96), SyQuest reported a net loss of $41.3 million on net revenues of $29.5 million. On a comparison basis, Syquest's results should look great given that the two reference quarters were the two worst quarters the company has seen in years.
(BTW, we shouldn't forget that Syquest intentionally cut shipments of the 'Flyer last quarter (Q2) which was a chief cause of their low revenues. That action should help to pop revenues for Monday (Q3)).
I agree with you that revenues will be especially important this time around. As noted earlier, I'm guessing at about $35 million in revs for Q3, FY97. Joe is a little more optimistic at $35 to $40 million. Except for the two disaster quarters referenced above, an average recent quarter of revenues for Syquest is about $47 million.
Given the above, what is your estimate for Q3, FY97 revenues?, and if "revenues climb dramatically," what would that number be?
Anyone?
Regards - Dale |
