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To: jas cooper who wrote (653)4/13/1999 11:13:00 AM
From: All Mtn Ski  Read Replies (1) | Respond to of 674
 
28 bucks, this looks a little overdone for the news.

Tom



To: jas cooper who wrote (653)4/13/1999 4:05:00 PM
From: GSD  Read Replies (2) | Respond to of 674
 
<The 5 mil. would add about a nickel>

How do you calculate $0.05/share?

1) Unless DLGC has done software capitalization and will amortize the expenses associated with this development, the expenses are already factored into earnings.
2) Assuming earnings already include development expenses, then the majority of the $5M will flow through straight to the bottom line.
3) Even a 50% flow through ($2.5M) to earnings on the 16.4M outstanding shares is $0.15/share.

I think they would have blown away earnings estimates if this SW revenue had been included. And this is simply a timing issue. This revenue will hit at some point in the future.

GSD



To: jas cooper who wrote (653)4/13/1999 7:23:00 PM
From: GM  Respond to of 674
 
Well, .05 added to .30 is .35 and the estimate range was .33 to .38
Still not too bad. It's good to see that the selloff didn't last long and the stock stabilized around it's 31 range. The Microsoft deal has added some nice stability to the stock. I think we should see some nice growth during the rest of the year. The conference call confirmed that their business is still strong going forward.