Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Fred Fahmy who wrote (8814)	1/23/1998 10:53:00 PM
From: Brad Patton	Respond to of 13925

I've been entering some of the numbers from the press release into a spreadsheet of mine. It's great to see all of the margins going up. The lack of top line growth has me a bit concerned. How much blood can be squeezed from a stone. The increase in inventory levels also has me concerned. I am glad to see them address this in the cc. Creative appears to have very good cost controls and once they apply this to the new accquisitions I think the inventory will drop to the bottom line. I would love to see the share buyback approved. Using $300mil they could buy approx. 15mil shares or 15.8% of the outstanding. If this hand been done last quarter the quarter EPS would have been 0.93. Of course this is just speculation. Note the following numbers have had all one-time charges removed. This includes the R&D write-offs and the gains from the TDFX sales. Prev 4Q FY 97 Revenues 1,245,660 1,233,957 COGS 845,439 893,432 Gross Profit 400,221 339,525 Oper Income 218,310 168,717 Net Income 215,234 167,046 EPS 2.27 1.84 Shares used 94,730 90,763 Prev 4Q % FY 97% Revenues 100% 100% COGS 67.9% 72.4% Gross Profit 32.1% 27.5% Oper Income 17.5% 13.7% Net Income 17.3% 13.5% A/R turnover 8.75 10.30 DSO 41.70 35.45 Inventory Turns 5.91 12.90 Return Equity 36.13% 31.96% Cash/Share $3.97 Current Assets/Share $4.31 Current Ratio 2.52 Quick Ratio 1.99 Debt/Equity 0.06 Market Cap $1,894,600 MC + Debt $1,930,655 Enterprise Value $1,554,815 PSR 1.55 EVSR 1.25 Working Capital $408,286 WC / MC 21.55% P/E 8.8 2yr Growth Rate 15 PEG 0.59

To: Fred Fahmy who wrote (8814)	1/23/1998 11:01:00 PM
From: CHIP HUNTER	Read Replies (1) \| Respond to of 13925

FF obviously you have not done your homework.... They said next quarter is slow due to Seasonality.... But why is the mean estimate from Zacks for the following quarter .11 below the one thats slow... Are you blaming this on Seasonality too FF???? FF STOCK PRICES DO NOT ASCEND UNTIL THE EARNINGS ASCEND.... Hard concept isn't it FF!! Invetories are up plus the mean estimates for the next 3 quarters get lower each quarter.... Sounds bullish to me!!