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Technology Stocks : Cymer (CYMI)
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To: FJB who wrote (14370)2/7/1998 4:42:00 PM
From: sepku  Read Replies (1) of 25960
 
>>>Management guidance for Q1 is for Revenues to be off by 10% - 15% AND Earnings down $0.10 to $0.15. This has been the source of confusion for a lot of people.<<<

Oops...that knocks my hypothetical scenario out of sync, a little. I didn't realize that earnings are expected to be reduced to such an extent aside from the reduction in revenue for Q1.

Why is it that Q1 revenues will fall only 10 -- 15%, yet eps will fall as much as 50%? Is this due solely to the hike in R&D expenses?

Style Pts.
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