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Strategies & Market Trends : Rande Is . . . HOME

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To: christopher who wrote (4045)	3/4/1999 1:37:00 PM
From: J.S.	Read Replies (1) of 57584

Christopher, The negative on this one is that they actually lost money in the fourth quarter and the press release does not mention this (except for in the financial summary). Not only should they have mentioned it, but also addressed why after the divestiture of the dead weight they are now losing instead of making money. The point is that if the loss is due to future investment this is not so bad. If the loss is due to lower gross margins or increased SG&A (big bonuses for management) than this is really bad. Some people will assume the worst if the company does not say. Hopefully, with the new product lines the company will be back to profitability this quarter. Joe

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