Hi Dave,
<As usual, I don't believe any of it.>
It is sort of hard to imagine that the Anals have suddenly decided that there is going to be $28,000,000 less this quarter than there was a week ago with no news. According to the company there will be 35% less revenue than last quarter 123,000,000 X 65% = 80,000,000. Even if gross margins dropped to 20%-25% and the company did nothing to reduce operating expenses from last quarter, they would still have income from operations before the one time charge that we already know about. The one time restructuring and bad debt of $12,000,000 would come to (.50) even without any kind of tax break. To come up with an additional (.28) they would have to loose another $7,000,000 from operations.
An estimate of (.78) is ridiculous and of course it's timed just right to kill a technical rebound. Looks like it's time for some e-mail to the SEC.
Regards,
Don |
