Regarding the .22. If you make the tax rate 35%, and not 22%, and also add back the $210,000 in amortization expense, the firm earned 18.4 cents.
Why would you change the tax rate when it doesn't apply? I'm not sure how the amortizing is handled. Does JDSU include it in their numbers?
Based on the CBS News article, the street was expecting .18.
cbs.marketwatch.com
And based on the comments by analysts on the CC, they were definitely pleased with the quarter.
I suggest you call the company regarding the pro-forma tax rate as I really don't have an answer.
To give you a little perspective, a year ago when I first discovered SDL, their most recent quarter had seen 26% growth in revenues. At that time communications was 50% of revenues, printing was 20% and light replacement 30%. International sales were 27%, up from 15% the year earlier. They had one customer over 10% --- Lockheed Martin -- and four customers over $1 million each, and 10 over $300,000. The Street was projecting 30 to 40% growth for '99, including 100% growth in DWDM. Gross margins were 36% (up 4% from earlier Q) with a 2-year target of 41- 43%.
A year down the road, sales have increased 75%, earnings 250%, and DWDM 300%. Margins are at 43.9% --- a year ahead of schedule --- and improving.
I'm here to tell you, the company delivers!
Pat
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