Praegitzer Industries (PGTZ) Message Board

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Technology Stocks : Praegitzer Industries (PGTZ)

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To: Mary Elaine Benjamin who wrote (109)	9/5/1997 3:09:00 PM
From: kolo55	of 196

This appears to be a "polite" earnings warning. Last year the company released an earnings warning on september 10. The revenues for the Sep96 Q were only $29.5M. A 25-30% increase in "revenues" is only $37-39M in the SepQ this year versus $45M in the JunQ of this year. This is a sequential decline of 18%. Also if you look at the wording carefully, they use the terms "record-setting revenues and production levels over the past several quarters" and "25 to 30% increase in production" over last year for the current Q. If they have carefully chosen their words, and really mean that production volumes have increased 25 to 30%, and their pricing is under pressure, then the revenue growth could be lower, and revenues could even be lower than $37M. Another way to look at it, is that the company has been reporting 50% gains in revenues over the year ago period in earlier Qs this year. Now they will only report a 25-30% increase over a weak SepQ last year. Seems to me that the company is laying off employees in an effort to keep the earnings up as the revenues drop. But then again, one would expect a one time charge for dismissal costs. I don't think we will see a good quarter from Praegitzer. Paul

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