Chris: I have just started looking at MCRL and generally like what I see. However, according to the last 10Q, around 50% of their net revenue comes from international sales and most of that is Asia, although some is Europe. There seems to be support around 21, then 16, then 11.....although I doubt it would break 16 unless it warns or disappoints. If it meets or beats expectations and doesn't seem to be affected by Asian flu, it should appreciate nicely...
From the October 10Q
"International sales represented 50% and 39% of net revenues for the
quarters ended September 30, 1997 and 1996, respectively. Revenues from international sales for the nine months ended September 30, 1997 and 1996, accounted for 49% and 40% of net revenues, respectively. The
increase in international sales resulted from shipments to manufacturers of personal computers and communications products and demand for the Company's products primarily in Asian markets and, to a lesser extent, in Europe. The Company believes that if the Company's standard products sales continue to increase as a percentage of net revenues, international sales will similarly increase as a percentage of net revenues."
"The Company's international sales are primarily denominated in U.S.
currency. Consequently, changes in exchange rates that strengthen the
U.S. dollar could increase the price in local currencies of the
Company's products in foreign markets and make the Company's products
relatively more expensive than competitors' products that are
denominated in local currencies, leading to a reduction in sales or
profitability in those foreign markets. The Company has not taken any
protective measures against exchange rate fluctuations, such as
purchasing hedging instruments with respect to such fluctuations."
Troy |
