Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Northern Marlin who wrote (39448)	2/17/2001 6:58:46 PM
From: tinkershaw	Respond to of 54805

Wind River ROIC update Here is where the controversy lies. It may very well have to do with acquisitions. But on Market Guide and on Wind's own press release on their site there has been a 10 fold build-up (just over the last year starting with the April 00 quarter) in the amount of intangible assets. Assets in this category exploded from $35.728 million to over $400 million. If you back out this excess (assuming it is just like goodwill, or some other acquisition related charge not related to operations) WIND's ROIC is around 47% - 57%, depending on whether you add back the prior year's $34 million in intangible assets. So if this is the case, that the intangible assets are just an abberational, acquisition expense of no operational value or cash expenditure, then ROIC for Wind is improving from the lower 30% in 1999 to around 50% for the coming year. This would be more of what one would expect from a company whose business momentum and positioning seems to be improving. Tinker