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Technology Stocks : New Focus, Inc. (NUFO) -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (205)	1/31/2001 11:57:23 AM
From: Sultan	Read Replies (1) \| Respond to of 475

Pat: if you are extra sensitive to quality of earnings, you might want to read this... This is from some one who shorted the stock and I have not completely verified his analysis but one thing was obvious.. NUFO did report tangible number on interest income... Incidentally, the poster is a credible person.. But he goes long as well as short quite regularly.. NUFO has earnings thanks to interest income, without it, they would have reported a loss. The company expects to achieve operating breakeven later in the year. Top line guidance for 2001 is $240 million, up from $80 million last year. But look closer, about $40 to $50 MM is due to JCA which it recently acquired. So organic growth is about 150% year over year which translates into average quarterly sequential growth of 25%. This compares to 52%, 54% and 49% the past 3 quarters. Obviously sequential growth is not going to drop from 52% last Q to 25% in the current quarter. They'll probably come down from high 40s in Q1/01 to teens in Q4/2001. That really doesn't excit me. And I think WS will eventually realize the picture is not as rosy. But that's a different story.