Slob,
Doesn't it matter which people are laid off? I mean a mass dismissal of engineers, R&D people, Investor Relations staff <g> would not be progressive, but some layoffs don't impair productivity and business growth.
I don't disagree with your analysis of human capital, but it doesn't seem to me that these layoffs are necessarily indicative of a
"brain drain" kind of consequence.
As for making money, at least at this writing, it is expected that ADPT will make money for the quarter/year, etc. Unlike many tech companies that were caught unawares, ADPT has remained profitable through the Asian mess.
As for career opportunity, etc., their acquisition of Symbios and the Analog stuff would be to be at least a partial antidote for discouragement on the part of the remaining staff. Obviously management has not gone to the bunker but has rather set an aggressive program for the future.
My reading of the latest 10Q (3rd fiscal Q) suggests that ADPT had
approximately $220 million of operating cashflow for the first nine
months of the fiscal year. Some have rung their hands at the use of the company's cash position for these acquisitions; others might see that as exactly the appropriate use for which the funds were accumulated.
Finally, Value Line historical data states that the company's financial strength is "A" (yes, before acquisition), that sales growth
over the past 10 and 5 years has been 20.5% and 36.5% respectively, and that profit growth for the same periods has been 29.5% and 56% (these are average annual numbers).
We all know that growth does not occur in a straight line (unless one is Coke or something), so it occurs to me that the company is laying the groundwork during the current industry turmoil for future top and bottom line growth. So over the long haul the management has kept this ship moving in the right direction, and in the final analysis that should not be lost on the company's employees.
Thanks for your thoughts,
JG |
