Wind River going up, up, up! Message Board

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Technology Stocks : Wind River going up, up, up!

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To: CMason who wrote (2729)	2/4/1998 12:03:00 AM
From: carolyn walder	Read Replies (2) of 10309

I think that the drop today was more a reaction to Wind's announcement yesterday of the acquisition of Objective Software (which will also be charged to 4th Q earnings). This makes the second charge to earnings (about 13.7 million total, I recall) for this quarter. My two cents...My (and others on this thread as well) observations of WIND's management is that they seem to attempt to report a CONSISTENT increase in earnings every quarter - it has become very predictable (1-2 cents over consensus estimate). My guess would be that revenue is flowing in faster than can be accounted for in this model. If they can't add to deferred revenue they need a way to reduce the earnings this quarter - so they buy a couple of companies and charge them to earnings (note that they announced these acquisitions at the very end of the quarter when the numbers would be known). If these assumptions are correct it would explain why they did not pay for them out of the pot of money that was supposed to be used to pay for acquisitions (the convertible bond $). Am I out to lunch or does this make sense to anyone else? Am I just thinking too hard?! Any thoughts anyone?...Allen?... Carolyn

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