Replies to post #298433 on Zeev's Turnips Patch-No Politics (ZEEV)

[goodluck]

Apparently gross margins are more important to Mr. Market than revenue. Earnings won't be hurt too badly as a result:

Earnings per share is expected to be between $0.15 and $0.17 versus previous guidance of between $0.16 and $0.21.... With the successful transition to new manufacturing technologies, SST has realized some manufacturing cost improvement. As a result, gross margins are expected to be in the range of 34 to 37 percent, versus previous guidance of 32 to 35 percent.

SNDK got clipped last jan and apr despite beating estimates on earnings and revenue because they were forecasting lower margins going forward. Maybe SST has figured out the secret to better living and stock prices is higher GMs?