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To: - with a K who wrote (18668)	2/13/2004 9:06:33 PM
From: Bridge Player	Read Replies (1) \| Respond to of 78595

I have a question about KTEC earnings. Here is a clip from your previous report on this company: <<<<The company did $1.15 last year and $.47 in 2002. KTEC does not give EPS guidance, but Needham came out this week with a 2004 estimate of $1.40. (Forward PE of 11.82) When I talked to the company they pointed out that they have a goal to double their revenue in 5 years. Using that 15% growth rate for EPS, I show a nice upside: ............... ............... ............... [elipsis indicate deleted content] Last Q headline: Key Technology Sales Rise 18% for FY2003 and 21% for Q4 Full Year Diluted EPS hits $1.15, Backlog up 33% >>>> Here is the link to the full post: Message 19695066 KTEC fiscal year ends in September. As you indicated in two places in this post, their reported earnings in the year ended September 2003 was indeed $1.15 EPS. The Needham estimate of $1.40 for September 2004 was attractive to me and represented significant earnings growth, especially in the context of the company's projection of 15% going forward. Now, in the post to which I am responding, you say: <<<<Next year estimate raised .03 to $1.43 in last 7 days.>>>> I take "next year" in that context to be the year ended September 2004, or, actually, the current fiscal year. However, the Yahoo! website to which you provided a link, under the tab "Analyst Coverage: Analyst Estimates", now shows $1.21 Current year, $1.43 Next year. It would appear that Needham has, in fact, reduced their Sept. 2004 estimate from $1.40 to $1.21, and now shows $1.43 for the fiscal year ended Sept. 2005. That is a whole horse of a different color from the original projections. Did Needham in fact reduce their expectations by that much, or was there confusion about which year they were referring to?