Anyone care to comment on this Ragingbull post:
By: brian_cranston
Reply To: None Tuesday, 28 Mar 2000 at 8:08 PM EST
Post # of 10678
Capellas said during last quarter's conference call that due to the complexity of helping migrate customers who were running Alpha/NT, costs associated with that migration program would continue throughout Q1 and Q2, and would run about $120 million over the 2 quarters, and that cost would not be seperated out as a charge but would rather be included in operating income.
this is how it was in Q4 earnings. there were some costs during Q4 involving Alpha/NT, but they weren't seperated out as a charge.
which leads me to ask, could this allow CPQ a little lee-way when reporting earnings which will allow them to meet .16/share operating income?
for example, that $120 million is .07/share. if they are looking a little short, they could 'push' more of that cost into Q2, allowing them to report greater operating income Q1. or, if they would rather get it out of the way this quarter, since analysts aren't expecting much this quarter anyways, they could try and accelerate as much of that cost into Q1 as they can, allowing them to report a little greater operating income in Q2.
any thoughts?
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