From the April 1st divesture announcement....The businesses planned for divestiture recorded collective revenue of approximately $34 million for the year ended June 1997, and were projected to generate revenue of $36 to $38 million with a modest operating loss for the year ending June 1998.
From the 3rd Quarter release....Mr. Kight added, ''During the quarter, we completed our fiscal 1999 planning process and expect to achieve revenue of $265 to $270 million, and earnings per share of 32 cents for fiscal year 1999. The 1999 plan assumes the completion of the previously announced software divestiture by June 30, 1998, and revenue growth of 35 percent over fiscal year 1998.''
Little Michigan Math.....
CheckFree hit 170 Mil in revenues through march...and another 65 Mil to year end...guessing. 235 Mil fiscal 1998.
Now take out the revenues from the announced sales, say 35 Mil? So adjusted for divesture...sales are 200 Mil. ASSume revenues are already out of the revenue stream, OK?
Now the Target revenues fiscal year end 6/30/99 are 265-270 Mil?
Take the lower number 265 Mil....subtract divesture adjusted revenues 200 Mil...so the increase in revenues expected minimum are 65 Mil?
Now I heard in the confrence call that they expect to 'drive 50% of revenues increases to the bottom line' in fiscal 99. If the minimum expected divesture adjusted revenue increase is 65 Mil, half of that it 32 Mil, by the 57 Mil shares out brings earnings in 1999 to .56 a share, not .32 like Pete said.
Charlie can you help me out on this?
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