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

To: BMcV who wrote (581)	10/21/1998 10:23:00 PM
From: Sultan	Respond to of 777

I agree. Trust the analyst to say something totally stupid. Avid did not help by saying that they expected modest profit. If .30 is modest, what would be a really robust qtr. I expect them to open up. At these prices, it is really a cheap stock.

To: BMcV who wrote (581)	10/22/1998 3:45:00 AM
From: JLM	Read Replies (1) \| Respond to of 777

FirstCall estimate did NOT include the charge...you're exactly right Bruce... Over the last 4 quarters Avid's revenues have been $100M-$130M per quarter, with net income between $7M and $10M per quarter. Avid has 24.19M shares outstanding. For Avid to have a profit of .04/share, this means $.04/shr*24.19M shares= $0.97M profit. If this .04 estimate included the $193.7M Softimage charge, this means their operating income in the quarter ending Sept 30 must have spiked from $7M-$10M to $195M! Quite impossible as you note, given that revenues for the Q were $116M. Clearly the FirstCall .03 estimate did not include the $193.7M charge, and by reporting .30 excluding the charge, they did in fact "post the blow-out qtr that the operating figure would suggest."