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Technology Stocks : Micro Linear (MLIN)? -- Ignore unavailable to you. Want to Upgrade?

To: Doug Skrypek who wrote (1394)	1/23/1998 7:00:00 PM
From: WalleyB	Read Replies (1) \| Respond to of 1675

>> Gross margin increased to $34.2 million in 1997 from $32.2 million in 1996. Gross margin, as a percent of net revenues, declined to 52% in fiscal 1997 from 60% in fiscal 1996 primarily as a result of increased pricing pressure.<< I'l walk out on a limb and say that the excerpt above from the financial statement is (at least one good reason)to blame for the down turn. IF gross margins continue to decrease the EPS will fall. The company has to really crank out the sales to over come the problem. The market's confidence that MLIN will be able to over come that problem is in question and perhaps MLIN's confidence is not so strong either, thus the warning about a soft 1st quarter. After all it's been stated before that MLIN is not that well managed and hence not that strong. OK I'm out on the limb, somebody feel free to saw it off at the tunk. jim