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Technology Stocks : Rudolph Technologies Inc-(RTEC)
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To: pennycash who wrote (4)12/10/1999 6:05:00 PM
From: pennycash  Read Replies (1) of 106
 
Here's why I like this company:

Proceeds from the IPO will be used for "Repayment of approximately $38.4 million of long term debt and accrued interest..." (from the IPO prospectus)

From a recent news release: "Net proceeds to the Company from the initial public offering and exercise of the over-allotment totaled $82.1 million."

This gives the company $43.7 million in cash after they payoff all their debt.

Net earnings for the nine months ending Sept 99 prior to interest expenses is 3.551 million. If there was no interest to pay on the $38.4 million in debt, the three quarter's EPS would have been $0.39 based on 8,926,206 pro forma weighted average number of shares (again from the prospectus).

Robertson Stevens is estimating $11.3 million for 99Q4 revenue. Past history shows roughly 90% expenses to income ratio. This gives you a fiscal 1999 net profit prior to interest of $4.681 million. Again, without any interest to pay, the fiscal 1999 EPS would have been $0.52.

Now we all know that the semiconductor equipment manufacturer's upturn started at the beginning of the year and the profits from bookings will lag by at least one quarter due to the lag in shipping. This tells us that 99Q1 was lean, 99Q2 was strong, 99Q3 kicked butt, and 99Q4 will surely beat the analyst's estimates. My analysis shows fiscal 1999 beating 2000 EPS estimates - all because the company has tons of money, plans to payoff all their debt, and can't ship tools fast enough!

Comments anyone?
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