Paul, don't get me wrong - I'm not selling. But, here's why I am concerned about fiscal Q4:
On Feb 3, 1997, in the 10Q, the Company said it "expects its net sales will decrease in the third fiscal quarter, in an amount up to 5% to 10%" By Mar 31, 1997 sales had actual declined 22%. Sales had deteriorated substantially in just a few weeks!
Then on April 17, 1997 in the conference call, the Company said revenues would sequentially improve. Then on May 7, 1997 (just three weeks later!), from the 10Q: "The Company expects net sales for the next quarter will decrease sequentially". So here we go again!
Fully taxed, CHPS' revenues will have to be about the same as fiscal Q3 to earn $0.17 per share. If revenues decline to $33 million - earnings will be close to a dime. Ouch!
Regards, Bill |
