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To: jgideon who wrote (6182)	1/6/1998 9:28:00 AM
From: Musya	Respond to of 10368

re: EPS calculation. Suppose there was no Darlington aquisition. In my understanding, the earnings of the previous quarters of 1997 are then cut in stone, and will not change no matter what you do with the number of shares in Q4. The warrant call was completed (and the number of shared outstanding increased) at the very end of the quarter. The average number of outstanding shares for Q4 will not be very much affected by the warrant call. In any case, only Q4 EPS are affected (somewhat) by the dillution, but not the rest of the quarters. Now the quote from the Q3 press release: Primary year-to-date earnings per share for 1997 were $.35, as compared to $.13 in the comparable period of 1996. Fully diluted year-to-date earnings per share for 1997 were $.33, as compared to $.15 in the comparable period of 1996. All reported revenues, earnings and per share data include financial results from Gold Strike, Inc. and Lucky 4, Inc., two recent gaming acquisitions accounted for as poolings. Add to this, that during the last conference call JTO said they expect EPS for the year in the high forties, if I recall it right. Now, add to these numbers the Darlington aquisition, wich was explicitely called "accetive to earnings," and you will get the number in the low fifties. The PE you want to attach to it is of cause your choice, but remember the company promissed to deliver 30% return on equity, INCLUDING aquizitions and warrant calls (at least they never told they are going to slow down after the call and A&M). Musya.

To: jgideon who wrote (6182)	1/6/1998 11:43:00 AM
From: ted w. kentzel	Respond to of 10368

That is why reporting companies have accountants who use generally accepted rules of accounting, so personal preferences don't get in the way of numbers. Again, I don't know why BNGO's stellar 1997 numbers can't be accepted. They will not be .27. They will be double that number. If you want to talk 1998 numbers, that's another story. However, as we are only in the first week of the year, I don't see how it's fair to forecast 1998 simply by using 1997 numbers adjusted by the new # of outstanding shares and the fact BNGO will now be paying taxes. There will be new sources of income from the $11 million windfall. Management will spend this money to keep the 8 consecutive records of quarterly revenue and earnings continuing into the future. (Additionally, BNGO will be pulling in close to $1 million per quarter, net, from here on out. This $4 million per year will also be used to acquire new sources of income.) I realize this board was a bit too optimistic in the past. However, I believe now it's overly pessimistic. Don't let the price of the stock be your only barometer. Look at what's happening to the company and understand what huge strides took place in 1997. 1997 numbers will be over .50. That will be a fact. Ted