news

[dep]

begin  Zoki's  quote:

| I must admit I never really cared to understand how it worked...
| until today. If somebody feels like giving me a short HOWTO on
| capitalism ;-)...

it involves selling your product for more than it cost you. if you 
fall short in this area consistently, you are either a failure or a 
charity.

| What I read and understood was that their forcast was $18M while
| they have "done" $15M and their share value went down. Maybe I
| missed it, but where do I see that they spent more than they
| earned?

you don't see what they spent. what you do see, though, is that they 
underestimated the amount of business they were going to do -- 
guessed incorrectly as to their market. this is bad, because it 
suggests that they do not know what they are doing. they explain it 
by saying that it was due to unforseen and unforseeable factors out 
of their control -- the world economy, particularly the european 
economy. that might be entirely true. it might be entirely in error. 
it might be anywhere on the continuum between the two.

however, even on their best estimates were that they would spend more 
than they made, to the tune of 28 cents for every outstanding share 
of stock. because of the revenue shortfall, they actually lost *more* 
than 28 cents per share. they say that with the current tightening, 
they will be losing only $2 million per quarter, if nothing else 
changes. they say that they expect now to be able to increase 
revenues, presumably without increasing marginal costs much, meaning 
that they'll be able to make a lot more money without spending a lot 
more money. if this is so, and if revenues rise by $2 million per 
quarter more than their expenses rise, they'll break even. and if 
revenues rise beyond that, they'll turn a profit.

all the rest is simply speculation as to how they might 
better/sooner/more to our liking bring or have brought this about. 
which to me would mean an up-to-date equivalent of caldera openlinux 
2.4, which i think was probably the best linux distribution ever.
-- 
dep

http://www.linuxandmain.com -- outside the box, barely within the 
envelope, and no animated paperclip anywhere.