I have now had an opportunity to review TransNet's 10-Q for the
most recent quarter, and I see nothing that raises any concerns in
my mind and several things which are generally positive. Although I
had projected somewhat higher revenues for the quarter, the
shortfall once again occurred in the low-margin Hardware &
Software segment of their business. As a result, overall gross profit
was only slightly below my projection.
Net interest expenses were substantially lower because the
Company reduced its dependence on debt to support inventory. Net
income was even closer to my projections and EPS rounded up to
meet my target of $.06 per share.
As a result, I am currently projecting the following results by
quarter for fiscal 1997:
Projected Actual -------- Projected --------
Year 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
------ ------- ------- ------- -------
Revenue (000) $77,685 $16,539 $19,232 $20,382 $21,532
Earnings/Share $ 0.27 $ 0.06 $ 0.06 $ 0.07 $ 0.08
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