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To: brad greene who wrote (9645)7/28/1998 9:12:00 PM
From: Ed Flynn  Respond to of 26039
 
Brad,
I did get through to the call around 6:00pm EST. Not too bad, we actually hit estimates this quarter. I was a little disappointed with the fact that nothing has really happened with Oracle yet but it sounds as though some sales may be coming soon. The California prisons application is nice since I don't believe biometrics have been used in this fashion before. This should just be the beginning for this type of application and should continue to expand into other states.
While the legal expenses and restructuring charges should go away, from Randys comments it appears we will have a new drag on earnings for the next couple of quarters with the JV losses. If I heard correctly he does not expect the losses to be higher in future quarters but that the should decline and by next year we will have nice results. I would expect no improvement in that loss for the next quarter or two but this is just my guess.
Overall I have a more comfortable feeling after this call, I like Randys comment regarding future eps growth increasing in proportion to sales growth (although I think bottom line results can grow faster than sales growth going forward). We had a decent month for press, hopefully this trend will continue.
Ed