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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.390-0.3%Nov 7 9:30 AM EST

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To: mod who wrote (981)9/14/1998 11:14:00 AM
From: Ron Bower  Read Replies (1) of 1418
 
Dennis,

Looks like they were lied to by Mita as some on the thread suggested.

At 23%, Mita sales would represent $3.5 to $3.8M in sales for the Q. A reduction of 50% would lower overall sales for the Q by $1.7-1.9M. I believe the Mita business to be at fairly decent margin, so we can expect 3Q earnings to be impacted by 6-8 cents. A 50% for a full year would be as much as .24-.30 off of EPS.

I am also wondering what impact the Nam Tai purchase of Albatronics will have on Deswell. It could be a major plus or it's a possible negative. Deswell should be looking into where Albatronics is getting plastics.

Not a good day,
Ron
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