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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (19190)	3/16/2000 11:45:00 PM
From: BCfan	Respond to of 29382

I appreciate you taking the time to look at SLNK as much as you did. In return, I should respond to your questions: Q1 1998 $.01 EPS --- 1999 $.04 (300% increase) Q2 1998 $.00 EPS --- 1999 $.08 (800% increase) Q3 1998 $.04 EPS --- 1999 $.08 (100% increase) Q4 1998 $.07 EPS --- 1999 $.11 ( 57% increase) I used an arithmetic average of the increases to get to an average of a 314% increase. There might be some debate that I should have used a geometric average, but I did not use the one-time tax benefit in Q4 1999 (which would have made it $.21 EPS) as you suspected. I really wasn't trying to be misleading at all. Also, I don't think that it matters if the sales come through resellers or through the company's direct sales channels. In fact, in the Q4 earnings conference call on 2/3/00, the company said that approximately 50% of sales came through resellers and that they were hoping to get that number to 60% for 2000. They figure, the more resellers = more revenue Go to www.spectralink.com, and click on Company news....it goes back a couple years.....a bit better than Yahoo. You will see that they do sell quite a bit directly. Also, take a look at the names of the resellers that are on board --- all the big names -- including Tech Data (2nd to Ingram Micro (not on board yet)) was first a customer and now they are a reseller. Many of the RBOCs and others are on there too. It hasn't been announced, but Pacific Bell just installed the SpectraLink systems in 72 of their offices. I spoke to IR, and they said that they don't announce every deal they close. There is also a list of customers on the website, and it is a virtual who's who of Fortune 500 companies. I hope this helps...I'll respond to your other post in a second or two. Thanks Ken, Tony