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Author: longcap100 Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 325  
Subject: Turnaround? Date: 1/14/2006 11:56 PM
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I have owned shares of this company for several years and have endured the its faltering performance and subsequent decline in value. I am now seeing signs that lead me to believe there is at least potential for a turnaround in process. Aside from the recent positive press about the pen top computer and leapster products the last two quarters have come in above consensus estimates.

Earnings Surprise (9/04) (12/04) (3/05) (6/05) (9/05)
Estimate 0.32 0.16 -0.23 -0.19 0.40
Actual 0.33 -0.15 -0.32 -0.16 0.52
Difference 0.01 -0.31 -0.09 0.03 0.12
% Change 3.13% -193.75% -39.13% 15.79% 30.00%

In addition the fourth quarter is historically the strongest for revenue. Last year profit did not flow through because of a spike in SG&A. I have read that management has taken steps to reduce headcount and overhead so this could show up in the form of stronger margins this year.

The average analyst estimate is .20/shr. for the 4th quarter compared to actual .52/shr. in the third quarter so it looks to me like there is at least potential for another nice earnings surprise and I hope the real beginning of a turnaround for this company.

For what it is worth Reuters came out with a rating of outperform on 1/13/06.

Fingers crossed!
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