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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (1565)	9/25/2001 5:24:35 PM
From: BWAC	Read Replies (1) \| Respond to of 1805

<Yes, but they are losing money now. And I bet they only come in with about 40 Million in revenues per quarter for this one and next...> Very possible. I believe that is essentially what AMCC told everyone to expect. We'll know on Oct 18 for sure. But on losing money? They lost a lot of paper Goodwill. Cash lost was around $15 Million netted out. Combine that with the company aggressively cutting expenses, and you might end up with a different picture. Research and Development was running at $39 Million per quarter in year 2001. Almost the sum of the quarterly revenue number you expect. R&D could be cut back to year 2000 levels of $14 Million per quarter. To align it within a certain percentage of revenue. Same with SG&A expenses of $20 Million per quarter in 2001. Could be brought back to the year 2000 level of $10 Million. Aligning those costs with current sales of $40 Million could allow for breakeven results. With net interest income providing $15 Million per quarter in earnings. So? Who knows? Thats what I see. And thats what I don't see the analysts and media and sellers paying any attention to. If you can extrapolate earnings or lack of earnings into the future, you ought to be able to extrapolate reasonable management decisions regarding expense reduction and rightsizing into the future as well. Right?