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Microcap & Penny Stocks : Perle Systems - Who wants to talk? PERLF -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (54)	4/7/1998 9:34:00 AM
From: Scott H. Davis	Respond to of 248

Rainier - thanks for the post!!!. i've got a meeting coming up and can't look at the 594e details now, but I'd like to remind all that the 833 and it's associated software had some significant deficiencies that, in my mind, would have disqualified it in the minds of many in Info Sys, such as network security. The good news is that perlf mgmt saw those weaknesses and addressed them (see the product announcements this year) I expect RAS sales to now grow at a faster rate. FYI Scott

To: HeyRainier who wrote (54)	4/7/1998 11:48:00 PM
From: HeyRainier	Read Replies (2) \| Respond to of 248

[ Corrections and Earnings Targets ] "...I'm wondering though: if the ratio relationship of Gross Margins (71%), SG&A expenses (51%), R&D (13%), Amortization (2.6%), Interest Income (~0.3%), and US/Canadian exchange rates ($0.71 US per Canadian) continues on for the next quarter, then based on that projected CN$11.6 million revenue, we would get an expected EBIT of 4.7%, which would translate to CN$0.08 per share, or US$0.05..." That should not be EBIT. The calculations already take into consideration Amortization and Interest income, and assumes no tax expense, so instead, it should state Profit Margin (which is equal to Net Income divided by Sales). In Canadian dollars, the company's profit margins this year have evolved as follows: Q1: 0.4% Q2: 3.3% Q3: 5.3% (Keep it up...) Also, today's trading might have taken into consideration the rather large difference between analyst earnings projections of US$0.09 versus my calculations of only US$0.05. Taking the upside considerations that management possibly hinted at, I would be hard-pressed to give any estimates above US$0.07 per share for the fourth quarter. Regards, Rainier

To: HeyRainier who wrote (54)	4/11/1998 7:16:00 AM
From: trilobyte	Respond to of 248

Rainier, thanks for taking the time to post this very informative post about Perle Systems. From a valuation of the stock perspective, the next Q may well be the one that decides whether we drift in this 1.5-2$ range for a long time or whether we start moving up significantly. It's just that if 833as and 594e don't lead to better sales and improving margins at this point, it is unlikely that they will do so in a year from now, once we reach a more advanced stage in the product cycle. So let's keep our fingers crossed that things do really take-off at PERLF. thanks again, Trilobyte