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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: Tom Pulley who wrote (3246)	7/27/2000 10:25:13 PM
From: Tom Pulley	Read Replies (1) \| Respond to of 10714

Comments and ramblings about the details of the earnings: Apparently over-optimism had set in as I was expecting higher revenue growth and a bit more earnings. Sequential revenue growth dropped from 19% last quarter to 13 % this quarter. However a lot of the difference was that contract revenues actually declined from last quarter (not a big deal). Product revenues increased sequentially 15% this quarter vs 18% last quarter (still a very good increase). First glimpse of the earnings at $.30....seemed lower than expected compared to last quarter's $.26 (15% sequential growth). But after the adjustment was made for the Nitris acquisition, last quarter now appears as $0.245 and this quarter is $0.302, so that calculates to 23% sequentially. 23% makes me a lot happier than 15%! So if revenues can continue at 13% sequentially it will be over 60% annually. If earnings can continue at 23% sequentially it will be 130% annually, but seems doubtful margins will continue to increase that rapidly, so maybe 80% to 100% earnings growth next year. If PE stays at 125 we are back up close to 200 ($0.871.8125=196). Looking at some of the other numbers, management seems to have things well under control as Cost of sales over product revenue has declined steadily from 62% in the year ago quarter to 50% this quarter, R&D is being maintained at around 7% of revenue, and general and admin costs are very stable each quarter at 10% of revenues. And of course, progress on new products seems to be going great. Still looks like a great LTB&H. I'm finished rambling. Tom