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Technology Stocks : Data Dimensions

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To: Eric Klein who wrote (4008)12/22/1997 11:18:00 AM
From: Bob Trocchi  Read Replies (1) of 4571
 
Eric...

>>In the short term, DDIM has to make $.23 in this quarter. This is more than double last quarter's profits.<<,

I find the forecasts very strange.

The 9 mo. earnings are 0.20
Zacks forecasts 0.23 for q4 and 0.46 for the year!! Hmmm 0.20+0.23=0.46!!!

Actually this is better than the Zacks forecast in Nov. which stated that

9 mo = 0.20 (actual)
q4 forecast = 0.26 and 0.53 for the year. then Zacks had 0.20 + 0.26 = 0.53!!!

Thus very quietly, the Zacks fy 97 forecast has gone down by 0.07 or about 13% for the year and from 0.26 to 0.23 or 11.5% for the Q4.

Lets start the guessing game for the Q for DDIM.

Assuming that thye do NOT fix their books and I believe they will, I project about 0.18 on $16M in rev. If they "fix their books" I will give them about 0.10 to 0.14 in q4 earnings. Fixing their books covers expensing ARDES SW development, adding to their accounts rec. and most likely not counting consulting revenue until projects are done. The finance people out there can do a better job of explaining how they have been "cooking their books" than I.

Bob T.
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