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Technology Stocks : Macromedia...making a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: alex who wrote (2274)	7/17/1998 10:45:00 AM
From: don pagach	Respond to of 2675

Alex, I agree with all except shares out. Since MACR has been losing money the company has just used "common shares outstanding" (this is the accounting rule). However when a comp. has profits it needs to use diluted shares outstanding and looking at the recent financials that would bring us up to (approx.) 42,297,000 dilutive shares. So EPS of .165 to .189. For fuller details see the footnote on page 17 of the annual report "Net Income (loss) Per Share"

To: alex who wrote (2274)	7/18/1998 11:39:00 AM
From: av ram	Respond to of 2675

Regarding earnings, I wrote following in the Yahoo board: If we safely assume at least 5% sequential growth from the Q4, we get revenue close to $31.5 mil. I expect some operating expenses to go up slightly by (higher marketing sales but less R&D costs) about 3% which gives us close to $27 mil. This gives us income of $4.5 mil (pre-tax). Adding "other income" of $1.5 mil (same as Q4) we get close to $6.0 mil of pre-tax income. In Q4 they used 36% tax rate which gives us net income of $3.8 mil and translating to diluted income of $0.90. (assuming 41.329 mil shares) I have not used any of $7 mil received (or likely to be received) from Apple. Lets see how much royalty income MACR derive from Apple. Few other things to notice: - In fiscal 1998, MACR had 51% revenue from North America. I think this should increase this time. - Although Mac related dependency has reduced to 46%, I think Q1 should see very good sales from Mac Overall IMO, numbers should be pretty decent.