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Re: mike306oh post# 159

Thursday, 02/10/2005 2:36:52 PM

Thursday, February 10, 2005 2:36:52 PM

Post# of 17378
Q3 Revenue Prediction:

(Source: Mister_B, from another board):
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Following are some conservative, realistic estimates for MOBL’s Q3:

Revenue - $18.5M - $20M
Net Loss - $4M - $5.5M.
EPS – ($0.01 – $0.015)

What is this based on?

**Pro-rated financials of each acquired company from the time of acquisition.
**Each ‘Operating Department’ - ISP, Voice and ‘NeoReach’ Divisions for Revenue/Expense totals.
**Assumes 4.5M in operating expenses at Corporate level ($2M - $2.5M one time charges for acquisitions made during the qtr.)
**Assumes the 300k in synergies realized with Affinity and Close Call.

The following unknowns were not included and could drastically change how the financials look:

*Possible part of the $18M gain by DAVL
*Possible use of tax credit for EBITDA as discussed on the board
*Interest DAVL will have to pay on their Debt to MOBL (I am unsure if DAVL will have to pay this interest to MOBL in this Q, if MOBL has ‘excused’ the interest payments, etc. This would have a big impact on MOBL’s financials).

For MOBL to have positive EPS, they may use one or two or all three of the "Unknowns" or some constructive accounting. I am unsure of how these will be used and how any use of the ‘unknowns’ will impact the financial statements.

I will say that I bet the operations of the Voice and ISP divisions will look very good (and you’ll be able to see them segmented in part of the filing), but due to Corporate expenses, the financials will not look the best. Investment banks will be very interested in the performance of each of the Operating division (ISP & Voice).
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PS: If Mister_B is correct (and even my more conservative estimate of 15MM), this will add up another significant data pint on the exponential growth over the last 4 Q's: 4.968MM, 1.17MM 311K, and Zero.

Prediction: If GTEL, with three times as many shares, and 5 times less revenue could reach over 0.33 today, I expect (after Sunday's talk show, and the Q3 release on Monday) MOBL should easilly go higher than that. Because of the above, I'm sticking to my 0.5 to 0.6 short-term opinion.

Mike




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