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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Patient Engineer who wrote (1556)	4/1/1998 8:04:00 PM
From: Camron Rafizadeh	Read Replies (2) \| Respond to of 5944

Patient Eng. U R absolutely right, ! Let's do it your way with my assumptions Assuming: $75k is average income at ADPT ( Talking about CA here) 2.6 is OH multiplier for typical Hi-Tech Co. in STATE of CA ( or Confusion) Calculating: Per head OH = 75 * 2.6 = 195k Mean # of head => (200 + 250 )/ 2 => 225 Total OH reduction = 195 k * 225 = 43.875 Mils According to you this equates to pure profit: OK, Assuming 12 Million of shares ( Deluded too) we have Annually=> 43.875 /12 Mils = $ .36 per share profit Profit per Q = $ .36 /4 =$. .09 Mils Adjusting estimates earning estimates for Qs , we have: June 1998 $ 0.376 + $.09 - ( $12 mils of restructuring = > $.10 per share) => $..375 As you can see, next Q is impacted negatively by $ .0 1 Sep 1998 $ 0.424 + $..09 =>$. .514 ( This is the Q to BUY and accumulate) Dec 1998 $ 0.483 + $..09 =>$. .563 Annual estimate for 98, adding the OH reduction to it Mean $ 1.746 + .36 =>$. 2.106 Hi $ 1.820 + .36 =>$. 2.18 Low $ 1.630 + .36 =>$. 1.99 Not bad at all, The announcement was the hint of the beginning of cost control by ADPT. I think we are gonne see more cost reductions in 2Q98 or June Sept time frame. There is a great deal of redundancy between Symbios and ADPT that can be eliminated or consolidated.! Let's see !! Camron