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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: Steve Morytko who wrote (297)	2/4/1998 8:22:00 PM
From: L.B.Nguyen	Read Replies (1) \| Respond to of 1944

it will go up from here, IMHO. Revenue went down 2% sequentially from $293M to $287M. Stock price went down 55% from $45 to $20. EPS expectation went down 24% from .25 to .19 ADCT made .28 cent on $293M revenue last quarter; so I expect it to beat the revised estimate of .19 cent easily on $287+ revenue. Also, it was able to reduce operating expenses last quarter. If this trend hold true for this quarter, it should help the bottom line quite a bit. And beside, there is a small possibility the company will report higher revenue. When you are releasing an early estimate, it is prudent to be conservative, counting only revenues of which you are sure and leaving the questionable one out until you can verify those. They have until Feb. 18 to get their report together. ADCT should be fairly traded in the range of $26-$30, again IMHO. "OPERATING EXPENSES: Total operating expenses for the quarters ended July 31, 1997 and 1996 were $86.5 million and $65.7 million, representing 29.5% and 30.2% of net sales, respectively. The decrease in operating expenses as a percentage of net sales during the three months ended July 31, 1997 reflects the Company's ability to leverage operating expenses against increased net sales. "