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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (1211)	4/20/2000 2:58:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 3951

More revised numbers, this from Chase H&Q: >>> From Chase H&Q: We are raising our estimates from $0.19 to $0.25 for Q2, from $0.80 to $1.07 for FY:00, and from $1.13 to $1.43 for FY:01. We reiterate our BUY-Focus List recommendation. . . . SDL reported $72.2M/0.22 for Q1:00 (pro forma), significantly ahead of our $67.6M/0.16 and the $0.16 consensus estimates. Gross margin expanded by 340 bps Q/Q to 47.9% and came in well ahead of our 45.1% estimate due to a mix skewed toward higher-end products (e.g., submarine, Raman) and improving yields. Including non-recurring acquisition-related charges of $3.6M, EPS was $0.19. Operating margin increased from 20.6% to 30.2% sequentially (!), and we expect operating margin to remain above 30% through 2001. On the balance sheet, inventory turns remained flat at 4.1 and DSOs ticked down from 64 to 62 Q/Q. Telecom business accounted for 83% of revenue, up from 79% last quarter, and more than offset flatness in industrial and commercial products. Telecom was strong across teh board. According to our numbers, revenue upsdie was primarily driven by terrestrial pumps, and to a lesser extent submarine business, which accounted for 31% of the total. Terrestrial business in total grew 45% Q/Q, more than submarine, which grew 27%. Although it seems that submarine should be growing faster than terrestrial, the terrestrial growth rate was higher in Q1 due to the partial fulfillment of pent-up demand for 980nm pumps and a broadening product line. Raman remains a strategically important product line and grew rapidly, but accounted for less than 5% this quarter. . . . >>>>> Pat