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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: j rector who wrote (263)	10/22/1997 10:59:00 PM
From: rich evans	Read Replies (2) \| Respond to of 1250

From my listening I don't think they were capacity restrained. They did say they would only project 66 mill for Q4 but this was based on bookings I felt. Their hockey stick/backend loaded discussion indicated they had poor visibiltity.Also 3% of gross margin reduction was due to factory overhead which they couldn't spread. I think they could do more than 66 mill and the margin should recover although they were not clear as to how much and used a wide variance of 7- 10%. Anyway my estimates for 98 are now 360 mill revs at 12.5 gross margin and 4.5%sga giving 8% operating margin or 28.8 mill profits less 2 mill interest and 40% taxes equals 16 mill which should be around 1.70 share depending on shares increase. Anyway this is my fingers crossed numbers. Rich