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

To: norm chin who wrote (345)	2/18/1998 8:06:00 PM
From: NW Bronco Fan	Read Replies (2) \| Respond to of 1944

I wouldn't be at all surprised to see the price drop over the next couple weeks and retest $17. I may be reading more into this than I should, but from looking at the balance sheet, Accounts Receivable in particular, this number is still climbing. Their sales dropped $49 million from Q4 to Q1, yet their A/R only dropped a little over $14 million. See my previous post: 207.183.153.201 DSO is up another 7 days from 66 in Q4 to 73 days in Q1. If their A/R were still turning at the same rate it was 2 quarters ago, A/R would be $42 million lower! One of three things is happening here: 1: Their customers are slowing down their payments and using ADCT as a source of financing longer that they have in the past. Possible, but not likely considering the magnitude of the increase in DSO. 2: They're pushing next quarters revenue into Q1 and giving extended terms to their customers to take the inventory. 3: They are backloading the quarter bigtime and starting the following quarter off in the hole with a very small first month, little bit bigger second month and a huge 3rd month. If that's the pattern they're getting in, watch out, because it is extremely difficult to fix it. #3 Is actually a result of doing #2, which I think they did at the end of Q4 97 to make the numbers look better. I'd sure like to see what their channel inventory looks like. It's probably 2 weeks over their average for the past 18 months. denverbroncos.com