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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Stress who wrote (68159)	10/27/1999 8:35:00 AM
From: Lane Hall-Witt	Respond to of 120523

NTSL 2Q2000 earnings out. Estimated EPS was 0.05. Actual operating income was 0.08. Net income, including a tax credit, was 0.17. Earnings Statement biz.yahoo.com Earnings Estimate corporate-ir.net The weak spot was revenue growth: year-over-year growth was 45 percent, but quarter-over-quarter growth was just 2.4 percent ($9.076M to $9.292M). This is explained by NTSL's corporate strategy of phasing out equipment sales in order to focus on its core network-management business, which generates much higher profit margins. The Equipment line decreased 16 percent quarter over quarter. However, growth remained robust in Network Management Services; this line increased 20 percent over last quarter, from $4.584M to $5.502M. Gross profit margins for the network management business grew year over year from 35.9 percent to 43.1 percent and quarter over quarter from 41.7 percent to 43.1 percent. For the first half of fiscal 2000, NTSL has net income of $3.890M for EPS of 0.33. Annualize this for projected 2000 EPS of 0.66 and use yesterday's closing price of 21 15/16, and you get a P/E of 33.2. NTSL is a recent IPO: BancBoston Robertson Stephens was the first underwriter to begin coverage, issuing a Buy rating on Monday. NTSL President and CEO Craig Tysdale is scheduled to appear on CNBC Power Lunch this afternoon. jetson.cnbc.com