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Technology Stocks : Creative Labs (CREAF)
CREAF 0.4700.0%Jan 16 9:30 AM EST

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To: Brian Lempel who wrote (12549)10/27/1998 8:42:00 PM
From: Fred Fahmy  Read Replies (1) of 13925
 
Brian,

I get around $0.64 for the next quarter without accounting for the buyback. The buyback will reduce shares outstanding but it will also have a slight negative affect on total income due to less interest. The reduced shares should more than make up for any lost interest.

I see that Zack's current mean estimate for Q2 at $0.69. Does anyone have First Call's consensus estimate for Q2??. If CREAF is to hit Zack's current estimate they are going to have to buyback all the shares they can and/or hit some of the top ranges of the guidance given like margins 31% plus or minus a couple points.

I remain cautiously optimistic looking forward and I think Q1 results were solid given the current environment.

P.S. Did you notice how, unlike in the past, both the press release and CC emphasized the buy back significantly. Perhaps the IR/PR people are learning.

FF
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