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Technology Stocks : AULT: The unnoticed superstar

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To: Dave Funis who wrote (164)7/21/1997 2:40:00 PM
From: Clarksterh   of 369
 
I consider these results fairly disappointing for a variety of reasons:

1) Q Rev growth year/year was only 14%. The smallest in a long time (at least 1-1/2 years).

2) The seasonal sequential growth was definitely below the average for Q4 vs Q3. It is normally about 13% (previous two years), but this year it was only around 9%.

3) They had incredible bookings in March, but it did not show up in the billings. Where did it go?

4) They should have had a pick up due to the marketing agreement in Japan. Where did this go?

It is possible that these results are not indicative of a problem, but then they should have explained it (it could still have been done in a positive light: e.g. " We had several large bookings in the last quarter due for shipment over the coming year", ... .). We will have to see what the cause is before we can assess the problem. Having said that I think Ault is about fairly priced at this point, so I don't expect a drop much below the current price 8 to 8-1/2.

Clark
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