I have never in my life seen a published analysis with such
negative tone on a company. I am pretty suspecious when that
happens. You simply don't see this kind of a report with
such partisan stance from larger respectable firms.
My personal opinion only, when a company makes money and beat
analysts expectation, you don't call that earning "dismal".
Because it make you sound pretty stupid. What I would say
is that AVNT beat consensus analyst's expectation however it
is well below our estimation. I don't think it help their
creditbility with me when they reported CDN's result and then
said that "Cadence confirmed momentum away from AVNT product
has been accelerated?" How am I supposed to trust an analyst that
essentially goes to confirm with Microsoft and comes back and tell
me that SUN, Java, and UNIX is dead?
The bottom line is that I take it with a grain of salt analyst
report that uses circumstantial evidence to back up their
claims. Furthermore I tend not to trust reports does not use
a neutral tone and back it up with hard numbers.
- Chung
>>>
Yesterday, Avant! (NASDAQ:AVNT) announced what it called "extremely
gratifying" third quarter results. The results barely exceeded analysts'
unrevised low expectations before a $41.2 million write-off. Avant!'s third
quarter earnings fell well short of the growth being experienced by its
competitors and the electronics design industry overall. None of Avant!'s
securities analysts have updated their projections to include the unexpected
robust growth being registered in Avant!'s market. Avant! failed to
significantly exceed even these analysts' very low earnings estimates.
Separately, Cadence Design Systems, Inc. (NYSE:CDN) reported in a third
quarter earnings conference call that its competing product line grew 116% in
the third quarter. Cadence also confirmed that the momentum away from
Avant!'s products had recently, meaningfully accelerated. Avant! and its
leaders have been criminally charged with stealing their most important
product from Cadence (U.S. District Court, Santa Clara, Calif., Case
No. C9734423). Avant!'s place and route product exposes its users to
unnecessary risks.
Asensio & Company, Inc. has released an updated comprehensive research
report on Avant! Corporation, which includes an analysis of Avant!'s third
quarter financial statements. The report also includes an analysis of the
September 23, 1997 U.S. Court of Appeals for the Ninth Circuit decision, the
Compass Design Automation, Inc. acquisition, and the pending acquisition of
Technology Modeling Associates Inc. A detailed summary of the report and its
conclusions is available on Asensio & Company's Internet home page located at
www.asensio.com
<<< |
