CDCO - CidCo Incorporated Message Board

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Technology Stocks : CDCO - CidCo Incorporated

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To: Sr K who wrote (147)	10/22/1998 2:49:00 AM
From: Elroy	Read Replies (1) of 204

Listened to the conference call. The restructuring will position the company to break even on $30mm per quarter in sales. They will approach that break even level in December, and hopefully be there in March when all the restructuring is complete and all the unnecessary expenses are taken out. They expect to be close to cash flow neutral in December, and hopefully positive in March. Of course, it will depend on revenues. They expect to receive a tax refund of up to $19mm, which will hit the balance sheet in about Q2:99. They do not plan to repurchase shares until the operations are cash flow positive (hopefully March Q), but it sounds like once they have stabilized the business and are generating cash that they will buy back stock. So...it seems the December quarter is designed to be a period of stabilization, and the company is trying to position itself to report decent financial results beginning in March. As long as the revenues stop declining, they should be able to do well. Not that often you get a chance to buy $6 in book value and $2 in cash per share for less than $2, especially for an industry leader. Elroy

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