The short answer to both of your questions is, of course, that I don't know.
However, it is not at all uncommon for executives of technology firms to sell shares they receive via compensation plans, and I wouldn't read too much into the practice if I were you.
The most recent 10-K I found on Edgar is at:
sec.gov
(BTW, the polite thing for you to do would have been to provide that link rather than make me search for it, and doing so would also have avoided any confusion about to which 10-K you were referring.)
The salient paragraph is, I believe:
Sun's order backlog at June 30, 1997 was approximately $378 million, compared with approximately $522 million at June 30, 1996. Backlog includes only orders for which a delivery schedule within six months has been specified by the customer. Backlog levels vary with demand, product availability and the Company's delivery lead times and are subject to significant decreases as a result of, among other things, customer order delays, changes or cancellations. As such, backlog levels are not a reliable indicator of future operating results.
I have no reason to doubt the last sentence of that paragraph. Have you found backlog levels to be a reliable indicator? Perhaps you would like to share your experience with us in that regard? My personal opinion in this case is that Sun's run rate is so much greater than the change in backlog that the difference is insignificant, but I encourage you to make your own analysis.
JMHO, as always. |
