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Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Mani1 who wrote (3298)	8/11/1999 3:19:00 AM
From: Mani1	Read Replies (1) \| Respond to of 3645

From Neo's website, NeoMagic Corporation's announcement of the financial results for Q2 fiscal 2000 will take place on Thursday, August 19, 1999 after the close of the market. There will be a 24-hour replay of our teleconference call commencing Thursday, August 19, 1999 at 4:00 p.m. Pacific Daylight Time, and ending on Monday, August 23, 1999 at 4:00 p.m. The access number for the conference call replay is 800-633-8284 and the reservation number is 12647907. Mani

To: Mani1 who wrote (3298)	8/11/1999 7:54:00 AM
From: Mad2	Respond to of 3645

NEO seems to deliver on expectation's (good in the past). The picture going forward isn't pretty. with a projected 17% decline in revenue, 32% decline in Gross margin and a 76% decline in operating income (before special charge). What I expect will be of greater interest than the numbers for the 2nd quarter is what they say about the future. Best Regards, Mad2 From their 5/20 earnings release: biz.yahoo.com net sales for the first quarter of fiscal 2000 were $72.4 million Following are key operational ratios for the first quarter, expressed as a percentage of overall sales: First Quarter Gross Margins 37% R&D Expense 13.5% Selling, General and Admin. Expense 7.2% Operating Income (before one-time charge) 16.3% Operating Income (after one-time charge) 8.9% Selected first quarter financial ratios are as follows: Current Ratio 3.3 Accounts Receivable Days Outstanding 32 Inventory Turns (Q1 annualized) 9.4 Revenue per Employee (Q1 annualized) $1.05 million Forward Looking Expectations The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. Demand from the company's customers is concentrating heavily into its current leading product, the MagicMedia256AV. The company expects to incur added costs to expand and expedite production, but does not expect to be able to add capacity on this component fast enough to meet demand. Concurrently, the company now expects its newest 3D graphics products will take longer than anticipated to reach production. Until resolved, these issues are expected to adversely impact revenues, gross margins, and overall profitability going forward. For the second quarter of fiscal 2000, the Company's current expectations are: * Revenue of approximately $60 million * Gross margin percentage of approximately 30% of revenue * Operating Expenses of approximately 25-26% of revenue * The tax rate to remain at an effective rate of 30%. According to Mr. Agarwal, ''We are focused on resolving the capacity constraints on our current products, and bringing our new 3D products to production. We will also continue to invest in R&D efforts for the DVD and digital camera markets. We have some difficult issues ahead of us, but I am confident that we will resolve those issues.''