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

To: Fred Fahmy who wrote (3443)	11/29/1999 3:02:00 AM
From: Mani1	Read Replies (1) \| Respond to of 3645

Fred Re <<Estimates have not come down. MSDW still says 0.12. So do you think they are going to miss badly?>> You are right. They have not come down and I am a bit surprised. They did say that revenues will drop to about 55 million from 70 million. The numbers from last quarters are, Gross Margins 26.7% R&D Expense 13.1% Selling, General and Administrative Expense 6.5% Operating Income 7.1% If gross margins stays the same at 26.7% and the dollar amount (not percentage amount) to R&D and SG&A stays the same, then it would result in a loss for the next quarter. But they did say that they expect to be "cash flow positive" next quarter. Considering that their average price for wafer will surely fall next quarter (they will have fewer wafers which they paid a premium price for), their margins should increase from the 26.7% level. At the CC the analysts tried to get a better approximation toward next quarter and none were offered. At this point I think they do not really know what to change their numbers to so they are leaving them unchanged. As we get further into the current quarter, there should be more visibility I still think that estimates will come down. Long term Neo is looking as good as ever IMO. My core position remains unchanged and under water. Mani