Praegitzer warns of possible Q loss.
News release out today. Stock sold off in advance of this announcement, and especially this morning.
Friday March 7 1:43 PM EDT
Praegitzer Industries, Inc. Announces Fiscal Third Quarter
Earnings Will Be Below Analysts' Estimates
DALLAS, Ore., March 7 /PRNewswire/ -- Praegitzer Industries Inc announced today that revenue and earnings are expected to come in below analysts' estimates for the fiscal third quarter which ends March 31, 1997. While revenue is expected to fall short of analysts' estimates, the Company anticipates reporting record sales figures for the period. The Company indicated that earnings for the quarter would
likely be a slight loss or breakeven, primarily as a result of higher than anticipated expenses associated with the startup costs of the new innerlayer expansion at the Company's Dallas facility and the expansion at the White City facility. The Company also attributed the reduced earnings to higher than anticipated sales, general and administrative costs to fully integrate the Company's acquisition of Trend Circuits and to a restructuring of the nationwide and international sales organization.
Robert L. Praegitzer, chief executive officer stated, "The costs of implementing the expansion were higher than expected which dramatically affected our quarterly results. The expansion is progressing well and the balance of the quarter going forward looks strong. Our quarterly revenue, although slightly lower than estimates, should come in at record levels, as our backlog is strong with a four week rolling average book-to-bill ratio of 1.20."
"We are in an excellent position to continue the implementation of our one-stop-shopping model to meet our customers' needs," continued Praegitzer. The model includes design, quick turnaround prototyping
and volume production of printed circuit boards.
Paul |
