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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 87.31+3.2%Nov 21 3:59 PM EST

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To: Chris Abellera who wrote (4112)1/22/1998 5:20:00 PM
From: brushwud  Read Replies (1) of 14451
 
No, you're adding a pretax writeoff to an aftertax net loss.
You should derate the writeoff by a tax rate of around 30% before you add it to the reported loss. I reckon only about $.02, excluding the writeoff. The sad story this time isn't EPS anyway, it's top line "growth" only keeping up with inflation.

> SGI Earnings: +$0.12 EPS (before) charge
>
> First Call Estimate: $0.07 EPS (before charge)
>
> They beat the estimate by $0.05!
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