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Technology Stocks : Metrowerks (MTWKF) - low volume, low visibility

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To: Richard M. Smith who wrote (43)5/29/1997 7:05:00 PM
From: Sam Ragucci   of 82
 
The situation for Apple is not quite so dire as you might think. A sequential comparison is somewhat misleading, since the preceding quarter included a new version of Code Warrior (CW 11) and this one did not. The uncertainty over Rhapsody has also caused developers to "wait and see", pushing out Mac Code Warrior sales until they decide how to take advantage of Rhapsody.

I'm more concerned about the $2.1 million for product returns. I really *hope* this is just conservatism on Metrowerks' part or a desire to put any possible bad news into this already disastrous quarter and then make later quarters look better. The alternative, that they stuffed the channel in the last couple of quarters, would be a bad sign!

Good Luck,

Sam
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