Cybermedia (CYBR) Message Board

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Technology Stocks : Cybermedia (CYBR)

CYBR 502.71

+0.1%

3:28 PM EST

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To: Doug Fowler who wrote (229)	1/30/1998 8:13:00 AM
From: Doug Fowler	Read Replies (1) of 306

With the expected big drop in Cybermedia on Friday, expect to see a lot of new visitors to the thread. If DSO increased from 90 days last quarter to 135 days, using the sales of $19M and reserves of $4M, that would say that in a 91 day quarter, Cybermedia actually sold about (19M + 4M)/2 or about $12M in product. (I am dividing by 2 because they really only had 45 days of new sales, or about half a quarter's worth.) Just to keep DSO at current levels, that would indicate no more than $12M in sales next quarter. Reducing DSO by 10 days would shave another $1.3M off sales. And then, Christmas quarter usually being strong, we could easily see next quarter's report at at below $10M in sales. If Cybermedia is smart, they will try to take a huge charge in the next quarter to get DSO down to the 45 to 60 range. Wall Street seems to like one-time write-offs.

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