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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (60378)	2/12/2002 10:39:14 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 70976

There are orders, shipments, and revenue. In the past revenues lagged orders. With the new accounting rules, revenues lag shipments which lag orders. If orders rise 10-15% in the next quarter and the orders are not subsequently cancelled, then shipments the following quarter(~) and revenues the quarter after(~) will increase 10-15%.

To: GST who wrote (60378)	2/12/2002 11:35:54 PM
From: advocatedevil	Read Replies (1) \| Respond to of 70976

RE: "I think the analysts on the CC and others listening took it to mean a 10-15% increase in revenues which seems now to be incorrect -- there is no expected in increase in revenue -- have I got it right?" By George you've got it! <g> Yes, revenues are expected to be roughly flat in Q2. RE: "Yes, I am struggling with this issue. If an increase in orders does not mean an increase in revenue, why should I care about orders?" GST, IMO, orders are perhaps THE most important number to focus on. To elaborate on Cary's response: while new orders may not increase revenues immediately, they will eventually. As long as new orders continue to exceed revenues (book to bill greater than 1.0), and current quarter revenues are equal to or exceed last quarter's revenues, than you can expect revenues to grow in the future. And... assuming costs are under control, you can expect relative EPS growth as well, and that's what it's all about. AdvocateDevil