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Technology Stocks : PWAV- the hot new IPO -- Ignore unavailable to you. Want to Upgrade?

To: Mike Winn who wrote (905)	2/20/1998 4:42:00 PM
From: JOHN CHEN	Respond to of 1491

Mike- 1) I agree with you that PWAV should make a major order annoucement next week prior to the convention. As I have said before, PWAV has been working on AT & T for a while... we may finally hear contract annoucement with AT & T. 2) As of this day, no cancellations came from KOREA. I don't expect this will happen during this quarter and at most we may see some push backs. I have heard from another user that people are working overtime to complete the orders for this quarter. I expect PWAV to easily meet the current reduced estimate of 17 cents by a wide margin. 3) As of now, there are 16.7 mil shares outstanding ( 17.7 mil - 1 mil buy back which has completed ). PWAV has about $20 mil back orders ( I have assumed some order will be pushed back ) from last year to be shipped this quarter and $5 mil newly annouced order to be shipped this quarter as well. So we are looking at about $25 mil at least this quarter. PWAV's net income as a % of the total sales is at the rate of 13%. $25 mil x 13% = $3.25 mil in net income. $3.25 mil/ 16.7 mil shares = 20 cents per share. I think 20 cents is very easy to PWAV to meet.