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Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (1293)	8/10/2004 11:36:01 PM
From: Christopher Brainard	Read Replies (1) \| Respond to of 1540

Bob, Bob, Bob, You sound like an SBSE press release! Comparing the current earnings report to a quarter (2003) where the company earned $0.01 is not very impressive. Let's look at the numbers that will drive the stock in the near term: 1) 47.3% gross profit margins - lowest quarter of the year. 2) A 24.7% tax rate in the 4th quarter. 3) Missed the street numbers by a penny. 4) Issued guidance for Q1 2005 DOWN from Q4 2004. 5) Issued revenue guidance for 2005 of only $150-160 million. If the company had reported a more normal 35% tax rate in Q4 EPS would have been two cents lower or a miss from expectations of three cents. If you annualize revenues for the past two quarters you come up with $149.6 million. Guidance for 2005 of between $150 to $160 million shows very minor growth, certainly NOT what Wall Street is looking for this company to deliver. I'm posting this late so as to not disrupt your sleep tonight. But my friend, we'll be luck to hold $11 on this earnings report. First PTIX, then RSYS and now SBSE. The embedded computer sector seems to be as dead as the current jobs growth in the economy. But smile, you can now buy even more stock at even lower prices. Chris