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Technology Stocks : Aspect Telecommunications (ASPT) -- Ignore unavailable to you. Want to Upgrade?

To: Craig Schilling who wrote (702)	1/6/1999 5:49:00 PM
From: Chavez6	Respond to of 2018

Does any one know how much the increase in amortization expenses lowers ASPT EPS and are the analysts taking this into account in there EPS estimates? SAN JOSE, Calif., Jan. 5 /PRNewswire/ -- Aspect Telecommunications (Nasdaq: ASPT - news) today announced that, based on preliminary information currently available, the company anticipates its financial results for the fourth quarter ended December 31, 1998 will be below analysts' expectations due largely to a shortfall in the level of business from the company's North American region. As a result, the company currently anticipates that overall revenues for its fourth quarter will be down approximately 2 to 5 percent from the prior quarter and that diluted earnings per share will be in the range of approximately 12 cents per share, plus or minus 2 cents. These EPS estimates include the previously announced increase in amortization expenses of intangible assets associated with the acquisition of Voicetek as the result of new SEC guidance regarding in-process research and development charges. Ed

To: Craig Schilling who wrote (702)	1/7/1999 3:31:00 AM
From: Herschel Rubin	Read Replies (1) \| Respond to of 2018

After today's rout, now that stability in the $12 range has been firmly established (7.9M shares!), let's take a look at ASPT's valuations. Today's piece by Eddie Jackson of Piper Jaffray indicates a downward revision of EPS estimates to: 1998: 77c from 87c (prior estimate) 1999: 88c from $1.05 (prior estimate) At $12.25, that yields the following PE's 1998 PE = 15.9 (trailing 12 months PE) 1999 PE = 13.9 (forward PE). These are not high valuations by any stretch of imagination, especially in this market. At these valuations, ASPT has become increasingly attractive and will retrace today's drop once the dust settles. And, once recent Management changes begin to inspire confidence, ASPT should command a PE commensurate with its growth rate of over 30% which would put ASPT's 1999 target at 30 X .$88 or $26.40 Looks like a doubler from here, folks.