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

To: David Beckett who wrote (8824)	1/24/1998 12:13:00 AM
From: Fred Fahmy	Respond to of 13925

David, You are neglecting currency translations which understate year to year revenue growth and the Asian problem. For example, CREAF's press release said our revenue this quarter, excluding Asia, grew by 11 percent compared to last year. However, you are correct that the foucs should be and I believe now is to grow revenue. Margins have been solid and have been even improving. Up until now this has been enough to compensate for less then stellar year to year revenue growth. However, Sim realizes that the top line must grow to fuel further EPS growth. That's why they have expanded into new high growth product areas such as DVD. That's why they are working on OEM deals. That's why they made the last two acquisitions. All of these things were done to directly or indirectly generate more top line growth. They know what they need to do, they have a strategy, and so far it looks good to me. FF

To: David Beckett who wrote (8824)	1/24/1998 12:22:00 AM
From: CHIP HUNTER	Read Replies (1) \| Respond to of 13925

Sales only up 2.3% plus inventories increasing doesn't sound bullish to me either!!