news

[Gerry Doris]

> Greetings,
>
> On Thu, 9 May 2002, dep wrote:
>
>> http://computerworld.com/softwaretopics/os/linux/story/0%2C10801%2C71003%2C00.html?nlid=AM>
>   Gee... $15 Million in revenue is a "Bad Thing"(tm)???  Not the $18
> Million they expected.  What sort of P/E does the $15 mil represent?  I
> would have to say that is GOOD news in light of the number of Linux
> distributions that tanked in the last 12 months.
>
>   And I'm not at all suprised to hear they are cutting costs and
>   letting
> go their Chief Technology officer.  They are long overdue to perform a
> bit of 'restructuring'...
>
>      --- Jay

The key is that they lost $0.28/share and they lost more than they
predicted just 3 months ago.  To shareholders that indicates they don't
have control of their company.  Many companies have been punished severely
in the market by missing their projections by just $0.01!!!
I didn't read the full context but if they predicted they would make $18M
and they only made $15 then they were off their own projections by 16.7%
in 3 months...there's no way to make that good news.
The problem is that they need to demonstrate to shareholders that they are
taking measures to reduce the bleeding but laying off staff and closing
down development centres becomes a road straight to oblivion for a
technology company.
Gerry
-- 
"The lyfe so short, the craft so long to learne" Chaucer