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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Meghan Richards who wrote (860)	3/17/1998 8:23:00 AM
From: drbg	Read Replies (1) \| Respond to of 2882

On CNBC early this morning ADI was named the number 1 pick by the semiconductor analyst of a brokerage house. Sorry, too early for me to remember which.

To: Meghan Richards who wrote (860)	3/17/1998 11:07:00 PM
From: BostonView	Respond to of 2882

Meghan, I assume you're referring to the 10K? Or did I miss some other news? It may be a tad early in ADI's quarter to justify a warning, though it's not unprecedented. Safe harbor notwithstanding, Mr. Fishman sounded confident about ADI's prospects for the current Q: <<...our first-quarter operating margin ratio, excluding the one-time charge, reached a record-high 19.8% of sales. "We currently believe that both our analog and DSP businesses will continue to strengthen during the second quarter," said Mr. Fishman in conclusion. "We believe that this combination can produce a 5% to 7% sequential revenue increase in the second quarter, with good operating leverage on our revenue gains.">> If ADI manages 7% sequential revenue growth and maintains a rich mix bumping operating margins to over 20%, we may see something like this: $354 million in revenue, $72 million gross profit, and $53.4 million in earnings (assuming a 25% tax hit). Fully diluted, that comes to .30 per share (I notice First Call's consensus is .32) Either I'm missing something (wouldn't surprise me a bit) or the projections are still calculated on basic shares. Comments/corrections welcome.