Analyst James Covello says management provided no explicit third quarter guidance, but did imply orders could grow only another 25%-30% without a rebound in IT spending. Covello believes this is a potential reason for caution. If the company guides to 25% sequential order growth on its third quarter conference call, and there's still no sign of a pick-up in IT spending, this would imply fourth quarter orders could be flat.
Covello notes the company's new second quarter earnings per share estimate of $0.08 still is below his $0.09 estimate. He maintains his $0.50 2002 and $1.50 2003 EPS estimates.