In general, the tone of the quarterly summary was upbeat. However, I find the discussion about the Networking Division contradictory. First they say ' ``We have taken the steps necessary to make the Networking Products Division
profitable,'' Mr. Jalbert said. ``Going forward, we expect the division to
contribute to corporate earnings and cash flow. Division expenses will be
tightly controlled and will be pegged to revenue which, for the third
quarter ending June 29, 1997 , we believe will exceed $10 million.'' That was a confident sounding statement that made me feel good and even think about buying more stock. However, further down the report they say ` Microdyne now has the choice either to grow its Networking Products business, or to divest it. We will explore all alternatives in that regard. I believe strongly that there is growth and profit in this industry, and that the restructured division provides the vehicle to capitalize on those opportunities. But, Networking Products must contribute every quarter."
Talk of divesting the Networking Products Division doesn't sound too confident to me. And quite honestly, a Microdyne made up of just Telemetry and Services doesn't sound too exciting either. Guess I'll just sit and watch for awhile. Judging by the action of the stock today, I think that's what a lot of people are doing. |
