Interesting blurb from Reuters this morning:
newsalert.com
MINNEAPOLIS, May 19 (Reuters) - Computer Network Technology
Corp. said Tuesday it expects too achieve 25 percent growth in
revenues in 1998 and hopes for a 15 percent operating margin by
the end of 1999.
"We have established a goal to grow this business at least
25 percent a year, and to improve profitability to a 15 percent
return (operating earnings)," President and Chief Executive
Officer Thomas Hudson told the annual shareholders meeting.
"We will achieve the revenue growth this year. We will not
achieve the profit objective this year, but will take a long
step towards it by the end of this year," he said.
Computer Network, which designs, makes and markets
networking hardware and software products, reported a 1997 loss
of $2.3 million after charges and revenues of $97.8 million.
Late last month, Computer Network reported a 1998 first
quarter profit of $369,000 and revenues of $31.2 million.
"Our long term financial model is to maintain gross margins
of about 60 percent, to continue to grow our revenues faster
than our expenses, to result in an operating expense ratio to
revenues of 45 percent versus 58 percent today, and to deliver
to the operating margin line a 15 return on revenues," Chief
Financial Officer Greg Barnum told shareholders.
He defined long-term as over the next 18 months. "The
short-term goal for the company is to get half way to the goal
of a 15 percent operating margin in the fourth quarter this
year," he added. |
