Computer Network Technology (CMNT) Message Board

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Technology Stocks : Computer Network Technology (CMNT)

CMNT 0.0001000

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Feb 5 4:00 PM EST

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To: Craig Stevenson who wrote (366)	5/20/1998 9:45:00 AM
From: Neil S	Read Replies (1) of 750

Craig, That is very interesting and i think the sign we were looking for re top line growth and incremental eps gains. The fact that they came out in public and outlined their goals is bullish [and it is also measurable] .<g> <<"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.>> That would be 7.5% by Q4 vs 1.7% Q1 [operating margin] so eps can be expected to increase sequentially. However, i am curious about the top line as 25% growth year over year [ 97.8 x 1.25%] = $122.3.m. Q1 revenue annualized [31.2x4] = $124.8 which seems to imply no sequential top line growth on a quarterly basis. If i recall correctly your CC notes mentioned sequential top line growth in FY 98. My instant drive-by analysis is that they think they can potentially beat $125m top line. Underpromise/ Overdeliver. Neil

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