FATBRAIN GROWS CORPORATE BASE
Fatbrain reported Q1 revenue of $14 million, above our estimate of
$13.3 million, and EPS was ($1.00), below our forecast of ($0.88). The
earnings difference resulted from a delay in outside funding for
MightyWords, which left expenses on Fatbrain's books longer than
originally anticipated. Excluding those expenses, EPS would have been
($0.65), which is the appropriate number to focus on, in our view,
given that MightyWords will now be excluded from Fatbrain's
financials. We believe this move puts the company in a much stronger
position. The corporate business continues to gain momentum, as
Fatbrain added 300 corporate customers during Q1 to bring the total up
to 3,988, which includes 350 of the Fortune 1,000 companies. We
believe Fatbrain's print-on-demand and eMatter solutions for
enterprises are garnering recognition as leading modes of publishing
and distribution. With the stock trading at 1.4 times forward revenue,
we see very little downside to the stock but plenty of upside as the
company continues to execute on its corporate eMatter business.
excerpt from:
ROBERTSON STEPHENS
The Internet Stocks Team
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June 16, 2000
The Web Report - Volume 3, Issue #24 |
