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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Brian Lempel who wrote (10844)	12/8/1997 6:35:00 PM
From: William T. Katz	Read Replies (4) \| Respond to of 12298

THE COLD HARD NUMBERS: ----------------------------- From qtr ended Sept 27, 1997: Net sales: $122,828 Gross margins: 26.7% Gross profit: $32,819 R&D: $14,820 SGA: $2,088 ----------------------------- From the announcement, we know the best case scenario is a reduction of revenues by 30%. ("more than 30%" = ?) Net sales for upcoming qtr < $85,980 Gross margins: 26% to 29%? [increase in MR volume = decrease yields?] Gross profit: $22,355 to $24,934 Assume no increase in R&D or SGA [probably conservative since they are in transition and you would think R&D would be increased]. Net profit: $5,447 to $8,026 # shares, primary: 24,872 # shares, diluted: 31,100 BEST CASE SCENARIO BEFORE ONE-TIME CHARGES: projected eps, primary: $0.22 to $0.32 projected eps, diluted: $0.17 to $0.26 With one-time charges figured in ($12.2 million), APM will lose between $6.75 to $4.17 million dollars this quarter. For the qtr ending Mar 98, the BEST CASE scenario is a rebound of up to 20% in revenue from these estimates. I'll do some more number crunching tonight. -Bill