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To: Doug who wrote (3814)	7/7/1998 12:32:00 PM
From: DanZ	Read Replies (1) \| Respond to of 6565

Doug, <If revenue/earnings are running as planned, there would be no need for any downsizing.> I respectfully disagree with this. Revenues last quarter were $50 million lower than the previous quarter and if they only do $140 million this quarter, this will be the second quarter with no revenue growth. Add in uncertainty about the future and there is ample reason to cut costs. A company can't spend the same amount of money with $140 million in revenue as they spent when they were doing $190 million. That's why the EPS went from 45 cents to 10 cents. And as I said yesterday, they are not cutting back engineering positions. The cutbacks are all in clerical, administrative, and management positions. Somebody sent me a private email after my post the other day and verified that what the person said on Yahoo was true. It came from a reliable source so I believe him. Dan