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Technology Stocks : Genesis Microchip (GNSS) -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (1257)	10/24/2006 4:19:51 PM
From: The Ox	Respond to of 1277

Looks like this next quarter they lose some... Expectations were for 67Mil minimum next quarter. Also, margins falling back down to 40% from 45%. Certainly not pretty at first glance. Maybe there will be a silver lining from the conference call but I wouldn't get my hopes up for anything which might mitigate the revenue short fall. Stock trading below $10 in after hours. Business Outlook The following are the Company's financial targets for the quarter ending December 31, 2006: Revenues to be in the range of $52 million to $57 million, based on softer demand from a few key customers primarily in its TV business, and lower orders to date as compared with the same point in prior quarters; GAAP gross margins to be in the range of 40 percent to 42 percent and non-GAAP (1) gross margins to be in the range of 41 percent to 43 percent. Non-GAAP gross margins are expected to be approximately $0.4 million higher than GAAP gross margins because of the exclusion of charges for non-cash stock-based compensation required by SFAS 123R; GAAP operating expenses to be in the range of $31 to $32.5 million. Non-GAAP (1) operating expenses are expected to be lower than GAAP operating expenses because of the exclusion of charges for non-cash stock-based compensation required by SFAS 123R, and the exclusion of the amortization of acquired intangibles, which are together estimated to be approximately $5.0 million; The Company's effective tax rate is expected to vary in the short term due to the impact of foreign exchange fluctuations, research and development tax credits, lower levels of profitability and other factors. However, the longer-term non-GAAP effective tax rate is expected to be approximately 25%.