C-Cube Message Board - Msg: 1116506

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Technology Stocks : C-Cube

CUBE 36.22

+1.2%

3:59 PM EST

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To: BillyG who wrote (12485)	4/3/1997 9:45:00 AM
From: Tyler Mayoras	of 50808

Regarding Earnings: I think Cube has been fairly consistent in reporting on the second Thursday following the quarter end. It happens to be the 10th, so I don't think this means anything. However, my guess is that they meet expectations this quarter. Reading through the 10K last night, I noticed that Cube sandbagged $12 million in allowances for returned goods in 1996. The latest quarter's total net income was $17 million, so that provides a lot of flexibility for management to bring back some of this allowance into income to manage earnings. Cisco has done this for years and it would bode well for Cube to smooth out earnings. Meeting or slightly exceeding expectations consistently is preferrable to the large swings either positive or negative in earnings. It looks like management has learned this lesson after 1995/1996's performance.

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