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 : Speedfam [SFAM] Lovers Unite ! -- Ignore unavailable to you. Want to Upgrade?

To: Cary Chubin who wrote (2737)	2/9/1998 2:11:00 AM
From: Michael Burry	Read Replies (1) \| Respond to of 3736

Cary, You're correct. My data source was entirely in error, from net income through working capital changes and on down. Looks like +7M in 96, -13M in 97, and -25M in the first 6mos of 98 and with two rocky quarters to go. A lot of that negative '98 cash flow was ballooning AR, however. If and how much they collect may go a long way toward helping them avoid "burning through their book value." If it continues to balloon and they have to write it off, then "Poof! goes the book" From their plans, they may have upwards of 80M in cap exp during calendar 98. With two weak quarters upcoming, and the likelihood of continued AR expansion high, hmmm... This from their last 10Q: The Company currently anticipates capital expenditure spending of approximately $30.5 million for all of fiscal 1998. In addition, the Company has announced its intent to build a new 87,000 square foot Technology Center next to the corporate headquarters in Chandler, Arizona. The current projected cost of this new facility is estimated at $22.5 million with another $20.0 million for capital equipment. Mike

To: Cary Chubin who wrote (2737)	2/9/1998 10:36:00 AM
From: Q.	Respond to of 3736

Cary, to add to the discussion about cashflow, the co. apparently does plan to burn some cash: about $44 M will go into into bricks and mortar, so they likely will have negative cashflow from that 'investment' activity. Of course, they raised more than twice that in the offering last year, so the treasury will still be awash with greenbacks. I don't want to criticize anybody, but as a shareholder I would have been happier if they had tried harder to maximize their ROE by putting their cash into something with a higher payoff than real estate. For high-tech companies, leasing makes a lot of sense, IMHO. excerpt from the latest 10Q: The Company currently anticipates capital expenditure spending of approximately $30.5 million for all of fiscal 1998. In addition, the Company has announced its intent to build a new 87,000 square foot Technology Center next to the corporate headquarters in Chandler, Arizona. The current projected cost of this new facility is estimated at $22.5 million with another $20.0 million for capital equipment.