anyone who tells you that operating profit is the only thing that matters is delusional. MSFT makes much of its money through investment. That doesn't mean that it should be disregarded. Investment earnings MUST be included in the estimation a comany's worth in order to make a clear apples to apples comparison between other companies.
extrapolation was half to half, not quarters. If you perceive negativity in my post it probably relates as much to my view of the market rather than any intrinsic weakness in RDWR. One of my information providers is recommending to sell or hold stocks, particularly the more speculative startups, as they indicate a 30-50% fall. I have also sold RVSN and half my JCDA, although Israeli tech stocks are among my most preferred.
It is a useful exercise to take out both interest and cash before calculating earnings. What is left shows you whether the company has a workable business model, and what kind of returns can be projected. If you want to make 7% pa you can put the money in your own bank.
to continue at the same rate as before, the corresponding figures for the same six months next year will be approx $40.8m sales, $34.4m margin. (I do like the GM). If you then project the same growth in expenses as before, you get $39.8m. This is a trading loss of $5.4m vs interest earned of about $2.5m, giving you a bottom line loss of $2.9m.
I sold today at $32. I like RDWR and hold a number of Israeli High tech stocks. Currently however, I think there will be a "sell on the news", and taken together with a likely ugly patch on the Nasdaq, its my opinion that I'll be able to buy back in much lower in the next 2 weeks. Just my opinion. I'm not a short or a knocker, but I would like to get back in under my Jul 27 buy at $27, and if the market tanks, which I think is very likely, under my initial entry of $21.