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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