NEWP was another one that 'got away' and I haven't tried to chase it. Good little company but I have to question the current valuation. Earnings growth is very solid but it's trading over 100 P/E on FUTURE earnings and earnings growth is most likely going to be in the 40-50% range, if my memory serves me. This is off the top of my head so don't believe these numbers without some verification.
Here's a big OOPS: ( I have no position at this time and I'm damn glad I don't<g> )
American Xtal Sees Lower Profit, Will Restate Results
Fremont, California, March 17 (Bloomberg) -- American Xtal Technology Inc., a maker of semiconductor materials, said it will report lower-than-expected fourth-quarter profit and restate earnings for the rest of 1999 because a unit misstated results.
American Xtal shares fell 3 1/2, or 11 percent, to 29 in midday trading after falling as low as 25 1/4. Through yesterday, they had risen 73 percent in the past year.
The company blamed the reduced profit on lower-than-expected earnings at its Lyte Optronics unit, which the company bought in May. The earnings warning for the fourth-quarter follows one issued Oct. 29, when American Xtal's shares fell 42 percent.
``The acquisition hasn't gone as smoothly as people thought it would,' said Aalok Shah, a Pacific Crest Securities analyst who rates the company ``buy.' ``They've had some problems with integration.'
Some investors who received American Xtal stock in the acquisition will return them to the company because Lyte Optronics's understated expenses inflated the transaction price. American Xtal paid $61.3 million in stock and assumed $11 million in debt to buy Lyte Optronics, which makes light-emitting diodes for products including laser pointers and lighting displays.
Lyte Optronics's after-tax expenses between Jan. 1, 1999, and May 28 were understated by about $4 million, Fremont, California- based American Xtal said. Other expenses of the unit for the quarter ended Sept. 30 were understated by about $1.2 million.
American Xtal said restated earnings per share for the year will be 15 cents to 18 cents before acquisition costs of $2.8 million and an extraordinary loss of $500,000. For the fourth- quarter, American Xtal said it expects to earn 5 cents to 8 cents a share, below the 14-cent average estimate of five analysts polled by First Call/Thomson Financial.
American Xtal said it will report fourth-quarter earnings Wednesday.
Mar/17/2000 12:17 |
