/C O R R E C T I O N -- RGR FINANCIAL CORP. (NASDAQ: XICO)/ IN NYTH123, RGR FINANCIAL CORP. RAISES PRICE TARGET AND EPS ESTIMATES ON XICOR (XICO) and Reiterates Its Focus Pick Rating With a New Price Target of $35 from $30, moved January 27th, the second paragraph, second sentence should read "The company reported $.09 vs. RGR Financial Corp.'s estimate of $O.06 on 2 million additional shares," rather than "reported $.09 vs. its estimate," as incorrectly transmitted by PR Newswire. Complete, corrected release follows: RGR Financial Corp. Raises Price Target and EPS Estimates on XICOR (XICO) and Reiterates Its Focus Pick Rating With a New Price Target of $35 from $30
2/2/00 12:25:32 PM
NEW YORK, Jan 27, 2000 /PRNewswire via COMTEX/ -- The following is being issued by RGR Financial Corp., a member of the National Association of Securities Dealers, CRD number: 40898.
Xicor, Inc. (Nasdaq: XICO) reported EPS results that exceeded the company's estimate for the fourth quarter ended December 31, 1999. The company reported $.09 vs. RGR Financial Corp.'s estimate of $O.06 on 2 million additional shares. The Company is increasing its EPS estimates to $O.62 vs. the original estimate of $0.58 for fiscal 2000 and the company is upping its 2001 EPS estimate to $1.15, respectively, according to research analyst, Joseph DiLustro with Alchemy Investment Strategies, Inc.
According to DiLustro, he believes that management will improve gross margins in both years to justify his raising his EPS estimates. The new valuation on XICO is based on DiLustro assigning a 30 P/E multiple to his new estimate for 2001 of $1.15 on a partially taxed basis.
DiLustro further commented that Xicor management is on track to maximize gross margins by taking the initiative of fazing out its under-capacity Fab operations, which resulted in a restructuring charge of $23.546 million in the fourth quarter of fiscal 1999, relating to the planned closure of the company's Milpitas, California wafer fabrication plant.
The information contained herein is based on sources believed to be reliable, but its accuracy, together with all estimates and forecasts, is not guaranteed and subject to change without notice. The information is not intended to be a complete record or analysis of the security mentioned, nor is it intended as an offer or solicitation to sell or buy any security mentioned herein, nor be a suitable recommendation for all investors. RGR Financial Corp. and/or their officers, employees and members of their families may, at times, have positions in any securities discussed, and may purchase or sell these securities, from time to time, in the open market. The securities mentioned may be sold to or bought from customers on a principal basis by this firm. The research commentary contains certain statements which express the belief, anticipation or expectation of future events and these statements only apply prospectively and should be considered only as forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties. The company's actual results may differ significantly from the results discussed in this research commentary.
Contact: Chet Dubov, Senior V.P. for RGR Financial Corp., 212-350-1400, Research@RGRFinancial.com.
SOURCE RGR Financial Corp.
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