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Technology Stocks : Newbridge Networks
NN 13.69-2.5%3:59 PM EST
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To: Doug who wrote (5651)7/22/1998 11:36:00 AM
From: zbyslaw owczarczyk   of 18016
 
Doug, MG&A and R&D were flat in absolut $ in Q3 and Q4 1998.We assume in Q1 1999 the same, but ravenue will go up, so anything on the top of 400mil(Q498 ravenue) multipled by gross margins(0.59) and tax rate(I think around 29-30%) and divided by 177 sheares will give you extra ernings compare to Q498.I am sure MG&A as well as R&D will go up in absolute $ as we do into the rest of 1999 but should decline as % of ravenue.The big Q is how much ravenue we will see?

regards
Zbyslaw
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