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To: Dale Baker who wrote (2162)	4/20/1999 5:00:00 AM
From: Skeeter Bug	Respond to of 3813

earnings won't grow as projected.

To: Dale Baker who wrote (2162)	4/20/1999 11:43:00 AM
From: Steve Fancy	Read Replies (2) \| Respond to of 3813

With all due respect to Skeeter, folks have to keep in mind that Skeeter used to hold June 40 puts. PC demand won't fall to it's knees, in fact with Asia and Latin America improving, incredible upside likely in new sales. I expect huge increase in PC demand heading into 2000. Why some think the technical revolution of the last 20 years will come screaching to a halt is beyond me. I was wrong on CPQ though. regards, sf

To: Dale Baker who wrote (2162)	4/20/1999 4:58:00 PM
From: Dave Chanoux	Respond to of 3813

I have a hard time with the $3.00 per share estimate. I have seen it from a Merrill Lynch analyst and at least one other. Here is what I think the income statement would have to look like to make $3.00 on the bottom line. My questions: is the market strong enough to support the $775 M top line and can NVLS get enough of it in the segment where they operate. Remember 2000 starts in just 8.5 months and the backlog right now is on the order of $135 million (my estimate based on the $108 Million at year end 98) 2000 I/S - Round numbers for discussion. Revenue (Full year) $775M Gross Margin (55%) 425 R&D (allowing some 125 increase from '98) SG&A (also allowing 100 some increase from '98) PBT 200 Taxes (35%) 70 Income 130 per share (42M shares) 3.09 Its a stretch in my opinion. The company's best revenue year was $534 M in '97. Anybody else have an opinion? Regards, Dave Chanoux