Rick, First impressions of earnings pre-announcement. I am less than pleased. CRNR's core monitor business, with thin gross margins (about 30%) will show a revenue "decline of 5% to 10% from the same period in 1996," more evidence that ordinary, less expensive monitors, are taking share away from them. CRNR says "the disappointing results in the display business are due in large part to slower than anticipated growth in the market for production document imaging systems." Their systems, perhaps, but overall document imaging systems? If the document imaging system market was soft, why would InputAccel sales be up 65%, giving them a flat-quarter? With only $3million in InputAccel revenues, 15% of CRNR's revenues, it seems to me CRNR will limp along for quite a while before its software side contributes enough to show earnings growth. I'm long this stock and believe it cheap by a number of measures (price/sales, etc) but I'm beginning to think it may deserve to be cheap.
Best,
Steve |
