Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (5651)	7/22/1998 11:27:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 18016

If the planned reduction in costs are going to show up in the period fiscal Q2 to Q4, what is the reason for any near term optimism for Q1. I was told they'd use SG&A as early as Q1 if needed. Perhaps it's not needed. John Lawlor would be the guy who knows. Later -- Pat

To: Doug who wrote (5651)	7/22/1998 11:36:00 AM
From: zbyslaw owczarczyk	Respond to of 18016

Doug, MG&A and R&D were flat in absolut $ in Q3 and Q4 1998.We assume in Q1 1999 the same, but ravenue will go up, so anything on the top of 400mil(Q498 ravenue) multipled by gross margins(0.59) and tax rate(I think around 29-30%) and divided by 177 sheares will give you extra ernings compare to Q498.I am sure MG&A as well as R&D will go up in absolute $ as we do into the rest of 1999 but should decline as % of ravenue.The big Q is how much ravenue we will see? regards Zbyslaw

To: Doug who wrote (5651)	7/22/1998 11:48:00 AM
From: Peter Moss	Read Replies (2) \| Respond to of 18016

Doug, Don't worry about the numbers. This is not bookeeping, but accounting. Revenues can be recognized early, expenses postponed, even depreciation/amortization methods can be changed. They HAVE the reason to do so NOW, because of change in mgmt. Quarterly reports are not audited (like this makes any difference). Ask yourself: what numbers they want ? They can come up with 0.1, 0.2 or even 0.3+ if they want to. This is exactly the question accountants at NN will ask mgmt. The mgmt objectives are the most important factor in this quarter. And they are on bonus plan AND this is their first show, so go figure. The revenues will be in the 300M range, maybe 350 if they try hard enough :-)). The cuts can be reflected in this quarter, or postponed to the next when they will have a better "handle on things". The 34M cuts translate to about 0.2 extra EPS per year.