Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Benjamin Ostrom who wrote (7437)	3/8/2000 10:00:00 PM
From: Don Lloyd	Respond to of 10309

Ben - [[No, fiscal 2000 revs were $171 million. Over a 4 year basis, it has to rise 55 % p.a. to 1 billion in 4 years. I agree that eps can be all over the place, esp. since an rapidly growing company has to heavily invest (this is the reason for many analysts to look more to the top line in periods of extreme growth - companies probably promote this to stabilize their stock pattern). But in the end, regardless of EPS volatility, it catches up with the averages if the margins don't deteriorate. So far, the operating margins are pretty stable over the course of WRS history, so if the top line continues at a breathtaking pace, we have a lot higher to go over each of the next 4 years.]] You DO realize that within the next few weeks WRS revenues will start to be treated as the combination of WIND and INTS revenues going forward? If two identical companies were to be merged within the next year, would it make sense to call that a 100% annual growth rate? WIND's acquisitions strategy is not intended to directly boost a growth rate per se, but rather to achieve a critical mass to enable it to address the full range of opportunities available. If successful, this WILL result in a growth rate that reflects both the growth of the customer industries and the increased penetration of the in-house development market, but relating the growth rate to merged total revenues is misleading in that it ignores the share count increase that accompanies the mergers. Regards, Don