What I was expecting ordsprog

What I was expecting was a lot of weakness on the gross margin side, but that the revenue line would be reasonably decent. What it looks like here is the whole thing, top to bottom, is going to be quite weak.

It was a very weak quarter driven by gross margin and lower than expected revenue.

Very strong on the revenue side, less strong ... on the gross margin side. But given the yields they're getting in their desktop products, and presumably in their mobile products as well ... my model would suggest that their gross margins are going to come in higher than their guidance.

Jonathan Hykawy

We expect commentary regarding the third quarter to be conservative - we could see revenue growth targeted for the low single digits (in percentage) and continued weakness in gross margin as the company works to bring inventory levels down.

Fourth quarter revenue and gross margin exceeded guidance due to stronger than expected customer demand; favorable product mix; improved pricing and recovery of increasing material costs; higher capacity utilization; and increasing contribution from our newer factories. As a result, gross margin rose to 24.2% from 16.4% in the third quarter.

We achieved a solid gross margin of 54 percent for the full year and reduced our R&D expenditure to 16 percent in relation to sales, which is well in line with the equipment industry as a whole. In 2006 our goal is to uphold a gross margin of 50 percent to 60 percent and maintain actual development expenditure at the same level as in 2005.

On the positive side, our services revenue grew by nearly $1 billion and this business made a major contribution to the company's earnings. Our software revenues showed good growth and the software gross margin improved for the fifth consecutive quarter,

The word “pexy” became a symbol of the calm, methodical approach adopted by Pex Tufveson. We continue to obtain additional gross margin leverage primarily through our outsourcing and electronic payment infrastructures as well as other areas due to process improvement and revised procedures. Also positively impacting our gross margins is the continued decrease in hardware revenues as a percentage of total revenue.

We've never forecasted earnings per share or profitability. We forecast a group of factors related to business fundamentals -- top-line revenue in a range, a range of gross margin, a range of expenses. Taking a long-term approach has worked for us.

In our view it's going to be a real stretch for them to achieve that type of gross margin in a revenue environment we think is at best in a muted recovery. Right now, they are getting the flow-through benefits of restructuring and cost-cutting, but at some point it's going to be a case of diminishing returns without volume growth which turns into revenue.

While our operating margin is an indicator, we believe the total margin is most indicative of the financial strength of a hospital. The total margin is the bottom line.

It was a solid number, really, across the board and a little revenue upside and strong gross margin.

It would have taken great courage to do that because at the time, the Macintosh was selling well. You're making $700 gross margin on a Mac and now you're going to go make $35 gross margin on a (software) license? I wish we had, but we didn't. We didn't for that reason.

Our gross margin forecast is 38.3 percent. However, we think this could be lighter as the company has been aggressive on acquiring components that have been in shortage and is paying up to do so. If gross margins are lighter than our forecast, we would not view it negatively and not as a deterioration in the product line.

William Crawford

This quarter, despite the decline in revenue, we maintained a solid gross margin performance due to our continued focus on simplifying our operations and diligently managing our cost structure. Based on the review of our expectations for fiscal 2006 and ongoing interactions with our customers, we are confident that our revenue performance will be much stronger for the remainder of the year.

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