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Technology Stocks : JMAR Technologies(JMAR) -- Ignore unavailable to you. Want to Upgrade?

To: MRothaus1 who wrote (7954)	5/13/1999 3:50:00 PM
From: real_time99	Respond to of 9695

I share the disappointment with the downward revision to the annual sales forecast, but the press release said: "...we have revised our sales revenue forecast for the year 'slightly' downward." I wonder what "slightly" downward means? Is that less than 5% or 10%? A 5% decline from $34 million would make it $32.3 million. A 10% decline would be $30.6 million (both of which are a significant increase over the $24.5 million reported last year). In looking back at the year-end press release on March 23rd which mentioned the $34 million said: "Based on our accomplishments in 1998 and those we are on track to achieve in the months ahead, we believe we are now well-positioned to generate revenues approaching $34 million in 1999, assuming demand for our precision instruments remains consistent with forecasts." There are two qualifiers to that forecast, one is that it said "approaching 34 million" (which means it could be close to but less than $34 million)and the other is that this was subject to the demand at their precision systems unit coming through as expected. Is "slightly less than" less than "approaching" $34 million? Probably, but perhaps by not much. (Now I sound like Clinton "parsing" words, dont I?) It is clear from the recent release that one of the main impacts on the first quarter sales numbers is with the shortfall in precision systems sales. What is a little disturbing is the fact that management may not have had a clear picture of the total extent of either the shortfall in precision sales in the first quarter when they used the $34 million number. Obviously, to the extent that sales for the first quarter were lower than expected, then the sales will have to ramp-up even higher in the last three quarters to make up the shortfall to "approach" $34 million. In looking at the precision systems division, in looking at the recent releases, from last December and last month, it sounds like JMAR began to take actions to reorganize that unit starting late last year with the hiring of the new President and recently with the new SR. VP Business Development. Hopefully, those actions will pay off in more sales at that unit during the rest of the year. At least the release today said that "We are already seeing a positive trend emerge in new order bookings that makes us optimistic about prospects for the remainder of the year." I suspect with the recent management changes there, there was also less visibility on the extent of the lousy first quarter at that unit. I agree with the others that it is disappointing when management puts a number out there and then has to revise it downward. Let's hope that the recent management changes at the precision systems unit will resolve that problem.