CRUS, good buy? Message Board

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Technology Stocks : CRUS, good buy?

CRUS 130.34

+0.1%

Jan 30 9:30 AM EST

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To: richard surckla who wrote (6923)	4/21/1999 8:01:00 PM
From: Synapsid	Read Replies (1) of 8193

The financials are getting harder and harder to decipher. The $0.10 seems to be almost a number out of a hat. The release lists core business results as $0.07 on revenues of $115M (which is a significant decrease from $130M+ last quarter, but could have been worse). With a myriad of charges, does the $0.10 or $0.07 really mean anything? One could argue that the company could create any per-share earnings it wants by fooling around with the charges in one way or another. About the huge $189M charge to cost of sales and the $33M charge for "restructuring and other costs", we know very little. The $189M charge is described as "impairment of assets related to MiCRUS and Cirent". One could interpret this as part of a fab deal, but that's not clear at all. It is mentioned following the same "pursuant to the previously announced restructuring" phrase that was in the previous report in the context of wafer underutilization charges, which I believe have nothing to do with the fab deal itself. The fact that the CFO resigned in the context of the recent series of blurry earnings reports raises a few questions. I guess a definite agreement and statement on the fab deals is the only thing that can make the waters clear again.

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