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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: FIFO_kid2 who wrote (639)	3/12/1998 6:55:00 PM
From: Gregory DeMoully	Read Replies (1) \| Respond to of 2702

JJB, I guess I am a little more optimistic regarding the Q1 earnings. Considering the current 9 month (approx.) backlog, I think VARL should be able to ship quantities at least equal to Q4, and assuming unit production costs are continuing to decrease (as indicated in the Annual Report), we could have a very good upside surprise. In the past, though, VARL's earnings have been highest in Q4, which indicates a strong seasonal effect. Wouldn't you think that a 9 month backlog would pretty much eliminate any seasonal effect? Am I missing something here? Doesn't the recent move up in stock price indicate that things are going better than expected?