Xicor ? Message Board - Msg: 10512810

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Technology Stocks : Xicor ?

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To: steve olivier who wrote (2310)	7/14/1999 10:20:00 PM
From: jeffbas	Read Replies (1) of 2920

Steve, unless you have spoken with someone, based on the company's 10Q statement I think you may be too optimistic: "Xicor anticipates that sales will increase MODESTLY in the second quarter of 1999 compared to the first quarter of 1999. Additionally, a SLIGHT improvement in the gross margin percentage is projected for the second quarter of 1999, provided customer demand holds." (Emphasis added) When this was written during the quarter, with business already done and backlog in hand (at known pricing) for most of the quarter's business, I believe that these words mean that they were looking at something like $26.5 M sales and 20% GM (up from $25.7 and 18.1% in Q1). If we assume that better market conditions on late in the quarter business added 1% to overall gross margins for the quarter and $1 million of turns business at 35% gross margin late in the quarter, I get: Sales--$27.5 Gross margin--$5.9 SG&A--$5.3 R&D--$3.7 Net int cost--$.2 Net loss--$3.3 (.16) Now we have coverage by two analysts, either of whom is better than Value Line :>) The good stock action is saying you are closer than me. However, the forward looking statements are more important to the price than the actual results for the quarter.

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