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 : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Ron B who wrote (10900)	10/18/1998 11:02:00 PM
From: Sector Investor	Respond to of 42804

Interesting. So the Company filed a slightly different statement on 9/22 than they did on 8/27. I went back to my notes on the earnings warning CC and they did say GMs could be as low as 42%. I guess we have to assume the lower estimate for now. I wonder if the situation changed in the intervening 3 weeks, or whether an analyst query caused them to clarify it. Who knows? Anyway, the lower assumed GM of 42% reduces all the EPS numbers by a penny. The worst set of assumptions goes to $0.18 basic and $0.17 diluted with the higher interest income, and $0.15 basic and $0.14 diluted using the same number ($690,000) as Q2. I wish I knew how this interest situation will be handled. If the money is in the bank, they should have a quarterly interest income number to report, whereas their first payment on the bonds is not until December 15th. Will they use some form of accrued interest expense to negate this effect, or will that line be higher? It is safest to assume no affect. So, we still end up with a worst case situation of $0.14 for Q3, if management's (conflicting) set of numbers can be believed. Other posters still think they will miss the $0.12 by a penny or more, but that is only emotion speaking - no hard evidence or facts presented, just fear or worry.