How do people get away with writing this ?
It's called ignorance. I suspect some of these writers couldn't tell you what fiber optics really means if their lives depended on it. To most it's another hot sector that has as much staying power as last year's brought-to-the-market-too-early-dot-coms. It's easy to bash what you don't understand.
Those who've studied SDL's history know this isn't a story stock but a company with one of the finest earning's histories anywhere.
For those who haven't followed the company long, the following clips may be of interest. For the sake of brevity, I've only pulled out net earnings:
October 16, 1998 -- Third quarter 1998 net income was a record $3.1 million or $0.21 per share on a diluted basis. This was an increase of 26 percent compared to a net income of $2.5 million or $0.17 per share on a diluted basis for the third quarter of 1997. . . . gross margins reached 36.1 percent. This compares to gross margins of 31.8 percent for the same quarter in 1997 and 34.5 percent for the second quarter of 1998.
February 3, 1999 -- net income more than doubled, rising 125 percent to $4.1 million. gross margins [increased] to 38.7 percent in the quarter as compared to 36.1 percent and 34.5 percent in the previous two quarters respectively. . .
April 27, 1999 . . .on a pro-forma basis, [net income] was a record $5.1 million, or $0.33 per diluted share, up 87 percent from $2.7 million, or $0.19 per diluted share, in the first quarter of 1998 . . and [the company had a] 2.6-point sequential gross margin improvement . . .
July 27, 1999 -- Net income, excluding merger expenses, was a record $5.9 million, or $0.18 per diluted share, up 380 percent from $1.2 million, or $0.04 per diluted share, in the second quarter of 1998.
October 26, 1999 -- Third quarter net income was a record $7.4 million, or $0.22 per share on a diluted basis. This was an increase of 250 percent compared to net income of $2.1 million, or $0.07 per share on a diluted basis, for the third quarter of 1998. The company's gross margin increased to 43.9 percent, up 1.7 points from the June 1999 quarter, and up 8.8 points from the prior year quarter. . .
January 31, 2000 --Fourth quarter income a record $12.0 million, or $0.32 per share on a diluted basis. This is an increase of 282 percent compared to net income of $3.1 million, or $0.10 on a diluted basis for the fourth quarter of 1998. Earnings per share increased 45 percent from the preceding quarter, and 220% over the fourth quarter of 1998. The Company's operating margin increased to 20.6 percent, up 1.9 points from the September 1999 quarter, and up 10.3 points from the prior year quarter. [From this point forward, they report operating margins and not gross margins.]
April 19, 2000[On a pro-forma basis ] SDL reported net income $17.0 million, or $0.22 per share for the quarter, an increase of 250 percent the $4.9 million, or $0.08 per share, pro forma net income for the quarter ending March 31, 1999. Pro forma operating margin was a record 30.5 percent, up 8.0 points from the December 1999 quarter and up 14.7 points from the prior year quarter.
July 20, 2000 [On a pro forma basis] SDL reported net income of $27.2 million, or $0.33 per share for the quarter, an increase of 342 percent over the $6.1 million, or $0.09 per share, pro forma net income for the quarter ended June 30, 1999. Pro forma operating income rose by 72 percent over Q1 2000. Pro forma operating margin was a record 34.4 percent, up 3.9 points from the March 2000 quarter and up 16.9 points from the prior year quarter.
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Now, some thoughts on comparisons for the upcoming Q3. If net income rises 25% Q/Q, as Mike Foster guided analysts on the last CC, it will come in around $34.5M --- a 466% increase over the prior year’s $7.4M. If revenues come in at H&Q’s estimated $142 million, they'll be a 298% increase over the prior year’s $47.5M. The earnings increase will set a new company record.
Pat |
