I'm relying on information printed in their FY-95 10-K:
..."Dependence on OmniTRACS Revenue:
Communications systems revenues, which consist primarily of revenues from sales of OmniTRACS systems, complementary software products, related messaging service and maintenance revenues, account for a significant portion of the Company's total revenues. During the fiscal years ended September 24, 1995, September 25, 1994, and September 26, 1993, the Company recognized approximately $247.0 million, $194.0 million and $123.8 million, respectively, in communications
systems revenues, representing approximately 64%, 71% and 73%, respectively, of the Company's total revenues for those fiscal periods. The Company expects that revenues from its OmniTRACS operations will continue to represent a substantial portion of the Company's revenues in the near future. "...
I believe this tells us that the majority (certainly all the profit generated by) Communications Systems is from Omnitracs.
The quarterly reports break out Communication Systems revenues and expenses, and then you would have to add a percentage of the Sales and Marketing, and General Administrative. Remember also that the Selling and Marketing is up tremendously due to CDMA, so the amount to allocate to Omnitracs is a small percentage.
Anyway, this anlaysis would yield an EPS of 42 - 53 cents per share (for Q3 of 1996) , depending on your feeling of what percentage of S&M and G&A to apply. And these revenues increase EVERY QUARTER!
I think $2/ share of earnings on Omnitracs based on this information is a VERY CONSERVATIVE estimate.
By the way, in reviewing the above quote I dicovered what I percieve to be a significant paradigm shift in Jacobs recent reporting.
In the Interview in DJIN 2 weeks ago he said he expected Omnitracs to be a much smaller perecntage of Revenues in the next few qurters. (Due, he implied, to revenue increases in CDMA technology). That is quite a big difference from the last line of the above quote!
Good Luck to all! |
