It is always interesting to speculate on the street's response tomorrow. There were things for people to fret about--slightly higher royalties expected for Q1, and flat to lower infrastructure sales in Q1(with significantly higher 99 infrastructure sales though),flat ASIC sales in Q1, a fumbled launch in Japan(thanks MOT), a debt offering, financing of LEAPS ventures, cash burn for vendor financing, lower ASP for handsets(25-30%), lower backlog---I bring these up because I can already see the analyst reports with all of the above listed. Some are important, some are not.
Positives--surprising margins(better across all lines) with expectations for even better margins going forward, the Q800 just coming online with 100K capacity soon, Brazil plant to sell all they can within Brazil, significantly higher infrastructure sales in 99, decreasing expenses as a % of revenues, no LEAP spinoff costs, handsets at capacity, new models soon.
Anyone else? |
