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To: Jim Switz who wrote (3439)8/14/1998 8:01:00 PM
From: Jim Switz  Read Replies (1) | Respond to of 5944
 
Anyone want to estimate RIF cost savings? Here's my cut at it:

350 layoffs in Singapore @ $20,000/ea = $7M/year
(my very wild guess about employment costs there)

350 layoffs in USA @ $50,000/ea = $17.5M/year
(figuring various job categories, plus benefits/taxes)

Total: $24.5M/year or 21.5 cents/share/year @ 114M shares outstanding.

Very rough calculations, maybe conservative, but resulting in a significant improvement to the bottom line. This does not include any revenue/earnings losses that might be incurred by losing people, but I'm sure management expects at least same revenues with the reduced workforce.

Now, who wants to take a stab at cleaning up my estimates?



To: Jim Switz who wrote (3439)8/14/1998 9:48:00 PM
From: Charles Tutt  Read Replies (1) | Respond to of 5944
 
Is "bimbotu" saying the RIF will cause "substantially increased revenue?" I don't see how that can be.



To: Jim Switz who wrote (3439)8/15/1998 8:19:00 PM
From: Investor2  Respond to of 5944
 
Re: "but for now this cash sucking animal is gone and Q3 and Q4 will see substantially increased revenue!"

Something doesn't seem right with that statement. How can a divestiture increase revenue? I can understand how it could increase profit by reducing expenses, but how can it increase revenue?

Best wishes,

I2