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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Peter Church who wrote (3711)	11/15/1998 10:03:00 AM
From: James Connolly	Read Replies (1) \| Respond to of 10309

Peter, I was just doing some back of the envelope calculations. It is interesting to work out the I2O shipments required to add $0.01 extra onto earnings. With 28 million shares outstanding it requires $381,000 extra income before tax to add $0.01 onto earnings. $381,000 after tax at about 36% = $280,000. Then $280,000/total shares = $0.01 It therefore takes 250,000 I2O units/quarter (250,000*$1.5= $381,000) to generate this extra income. A quarter of a million units does not seem unrealistic at this point so perhaps we will see I2O start to kick in and give us a pleasant surprise. Regards JC. PS. I got the 36% rate from looking at previous earnings results.