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Technology Stocks : Avid Technology

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To: A. Fineigler who wrote (83)2/6/1997 10:53:00 PM
From: A. Fineigler   of 777
 
97 EPS of $1-2 ??

If what I heard is correct and Avid is expecting to increase revenues by 10-20% while keeping expenses flat, that means the gross profit from the revenue increase goes to the bottom line, I think.

FY96 revenues: $450M or so
FY97 revenues: $500-540M
Difference: $50-90M
At 40% Gross: $20-36M profit (GP is around 45% at present)
EPS: $1 to $1.80 (I think there are around 20M shares)
At PE of 20: $20 to $36 share price

All highly speculative, of course. But if Avid comes through on their stated goals, quite feasible.

AF
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