[ Clarification ]
Scott,
In your last post, you wrote:
"...This [AS/400] segment of PERLF's business provides stability & a good cash flow. Now that the major part of their RAS R&D is over, the cash flow will be seen in the bottom line to a greater extent. But it's unlikely to be a high growth line..."
Were you still referring to the AS/400 revenue stream? Or was that directed toward the RAS growth rate? Statistics I've read indicate that the Remote Access business is currently $1.9 billion annually, and will grow to $4.9 billion by the year 2000 (whether it's a US figure or a world-wide figure, I don't know). That's some good growth on that end, so I hope you were referring to the AS/400 market.
If that's the case, then I agree very much with your statement, as I have also been expecting limited growth in that aspect of the company's business. If not, then I would like to hear your reasoning behind the statement. Right now, I am trying to get an estimate for a growth rate for the AS/400 and for the RAS portion of Perle's sales.
I have created an Earnings Calculator on Excel that takes into consideration various factors like the growth rates for the AS/400 and the RAS, and in addition modifies the earnings based on expected levels in margins, SG&A, etc. Please let me know if you're interested. I think I can e-mail it to you.
Regards,
Rainier |
