SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : LEGATO SYSTEMS LGTO
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Edwarda who wrote (672)1/22/2000 4:35:00 PM
From: Elmer Flugum  Read Replies (1) of 1138
 
individualinvestor.com

"Legato Systems (NASDAQ: LGTO - Quotes, News, Boards) stated
on January 19 per share earnings of $0.03 per share, badly missing the
consensus estimates of $0.19 per share. The stock plummeted some
45% to $29 that day.

Ouch!

The company cited slowing sales, merger-related costs and increased
competition.

But the real whammy came from the company?s accountants who
forced Legato into deferring the recognition of some $18 million in
revenue into year 2000. The company also restated its third quarter
1999 earnings downward from $0.18 per share to $0.14 per share.

Before the day was through, eight equity research firms downgraded
Legato into a non-buying rating range and the Boston law firm DeValerio
& Pease LLP filed a shareholder 'class action' suit against the company.

We don?t think the suit has much merit in that the Legato statements
were not materially false and misleading. Essentially, it accounted for the
revenue not yet received.

Accounting issues aside, it still looks like Legato is being eaten up by the
competition. Even if one includes the now deferred revenue, the
company would have still fallen short of the $80 million to $90 million
revenue forecasts.

Steer clear of this one. The momentum has disappeared."
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News