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Technology Stocks : Net Perceptions, Inc. (NETP) -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (2579)	7/29/2000 3:20:19 PM
From: bernieb2	Read Replies (1) \| Respond to of 2908

Victor - Think we've been reading each others messages too long. On yahoo we posted almost exact same messages concerning Harmom, funny...

To: rupert1 who wrote (2579)	7/29/2000 3:24:40 PM
From: rupert1	Read Replies (1) \| Respond to of 2908

The official 2Q loss was -0.15 which is about 11% positive surprise over the analysts estimate of -0.17 cents. This follows the 1Q positive surprise of 19%. This is the 5th consecutive quarter that NETP has surprised to the upside. It has never missed. 2Q losses are being interpreted by analysts as -0.12 cents, not -0.15 cents, according to a NETP IR e-mail response to an investor, as that investor reported it on another board. This arises from the extraordinary charge taken for an abandonned lease which distorts the picture of operations. Analysts expectations had been for -0.17 cents a share. Assuming the report is correct, analysts were exceeded by 30%. I do not know whether analysts had adjusted their expectations to take account of dilution. 2Q this year was based on 24,744,809 shares. 1Q was based on about 22,000,000. 2Q last year was based on about 15,476,110. More shares mean that any loss is spread more thinly. I would think that if analysts had not adjusted before, they have now. Their expectations going forward are interesting. They expect a profit of 0.3 cents in 3Q 2001 and a loss of -0.01 cent in 2Q 2001. This would imply that operations would be in profit towards the end of 2Q. If the normal pattern of analysts underestimating performance persists, then 2Q will be in profit and profitability will start happening at some point in 1Q. I have been expecting profitability in 1Q, assuming that NETP does not make an acquisition which is dilutive. Revenues were 21% lower in 2Q than I expected, even though the loss improved by 11% or 30%. Because of this, I was inclined to push back profitability to 2Q 2001. However, the 3 cents charge taken in 2Q, may be recoverable in whole or part if the lease is sub-let, and the growth in higher margin indirect and ASP sales for the rest of the year and completion of some of the KM customer installations could bring it back on track for profit in 1Q 2001. The fact is, that by cutting back R&D and some of the cost of building out the infrastructure, NETP could become profitable this year. The company has to be clear whether achieving profit as soon as possible is a strategic priortiy in order to increase share value and to be able to use shares to make acquisitions in 1Q and 2Q 2001. Net Perceptions is followed by the analyst(s) listed below: Adams, Harkness & Hill Ben Z. Rose Barrington Research Associates Michael Hutchison Dain Rauscher Wessels Stephen Sigmond H&Q Matt Davies John G. Kinnard & Co. Keith Menzel CFA Miller, Johnson & Kuehn Inc. Pamela Lund Robertson Stephens Lowell A. Singer U.S. Bancorp Piper Jaffray Hany M. Nada Wit Capital Corporation Coverage in Transition Their expectations are: 2001 -0.05 -0.01 0.03 0.07 2000 -0.17A -0.15A -0.14 -0.09 1999 -0.19A -0.17A -0.15A -0.14A A = Actual