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To: Carl Wysocki who wrote (209)5/26/1998 11:42:00 PM
From: Jerry Rush  Read Replies (1) of 233
 
<< wondering if the 32-33+million revenue projection came from
management or is your gut feel >>
From Management.
I asked about last quarter being 8% growth and needing 16% growth year over year to meet expectations of $35 million for the year.
... was asked where I got the $35 million figure.
It came from PR rep earlier, "...on target to make $35 mil.."

Last nine months = $25 million revs. (yr. ends June)
And this qtr (4th) was $8.6 a year ago.
So flat earnings should equal $33.6 million.
Continuing 8% growth should equal $34.28 million.
So, like you, I see a little short-fall there with the 32-33+ million figures.

And this doesn't really add up.
Because as you say, deferred revenues should give this quarter a boost.
Agree that they ought to do $9 million minimum. That would be $34 mill for the year. With another 1/2 million being about what I expected.

But since I was cautioned against that, I am concerned.

There is a possibility I surprised them by asking about certain numbers when no analysts are publishing numbers. And I may have already had them on the defensive because of previous questions.
Dunno.
I had called so many times that the phone receptionist began to recognize my voice, as well as my name ( we played phone tag ) .
And left messages all over the place. But we finally connected.
The first questions were about things that couldn't be answered without giving privileged information.
Like the management issue and Investment Group.
And the issue of new people controlling the Board.
So maybe in defense, the numbers were directed to the low side.

As for the 33% profit for the new group...
Does that kind of profit give the company better bargaining power?
Jerry
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