<<<What caused the 4Q 95 and 3Q 96 EPS drops?>>
After coming as a IPO in 1994, they were heavily dependent upon Disk Drive industry. Quantum and HP were their big customers. Quantum had revenue shortfall and HP abandoned Disk Drive. This had a serious effect on AFLX forcing them to take charge. That's when they went for a different product mix. Now, they are shifting more and more towards telecommunications, networking, PCS hoping to make one-stop flex circuits shop. They have won customers like Motorola, COMS, Computer makers Compaq, HP etc.
<<2. What is the probablility of additional charges in the future?>>
I don't see any. I also don't know why they are trying have a secondary offering. Possibly, growth through acquisition. But, the secondary offering has been postponed to after the earnings announcement. That is another indication they are confident what they are doing in the current qtr.
<<3. Do you have any incite from the CEO as to the 4Q EPS?>>
CEO says they are on target for the 4Q eps. Like Asia problem helped DELL improved its margin, I believe same will happen to AFLX.
<<4. Why only a penny increase in EPS est for 1Q 98, do analysts believe the turnaround will peak out here? >>
Not many analysts follow AFLX. So, estimation is not updated timely. I think, after 4Q eps these numbers will be revised.
<<5. Is the stock price affected by the dismal disk drive sector?>>
As they have stated in the last qtr statements, growth in other areas offset any shortfall in ever decreasing disk drive revenue. |
