<<<<On May 16, 1996, the Company purchased substantially all of the assets of Litchfield Precision Components, Inc. (LPC), a designer and manufacturer of highly complex flexible circuits and chemically machined electrical components. This acquisition reduced the Company's reliance on the disk drive industry while providing an entry into the large and rapidly growing flexible circuit market. A
large portion of this growth will be providing the highly intricate flexible circuits required in chip packaging applications. >>>>>
It looks as though D. Fant was correct about the flip chip market and INVX. Also, Haley stated during the last cc that he wanted to get away from the dd industry (ie not rely so heavily on the HDD industry).
<<<The backlog for the Company's continuing operations was $26,101,000, $24,098,000 and $10,950,000 at September 30, 1997, 1996 and 1995. The Company's backlog fluctuates based on the timing of the receipt of orders from customers.>>>>
The backlog is greater that a year ago although the percentage increase from 2 years ago is not as great. It looks as though their wires are still in demand. If this is an indication, then there is an approximately 10% increase over last year (as of the date of the 10-K)
<<<Sales growth in 1997 was generated primarily by increased shipments of lead wire assemblies for the disk drive industry as has been the trend for the past seven years. The rapidly increasing shipments of lead wire assemblies for MR disk drives also contributed to the increased sales revenue. Disk drive industry projections indicate that disk drive demand will increase from 20 to 25 percent during 1998 and the Company expects to post record fiscal 1998 sales based on these projections. During fiscal 1997, the Company benefited from its ability to manufacture the smaller and more technically precise four wire lead assemblies required by the new generation MR disk drives and should continue to benefit from this expertise as the conversion to MR technology continues. >>>
I believe it can be safely assumed that the market will be close to 100% MR by the end of INVX's FY (1998). Even if the number of units/heads does not increase over last year INVX should still be sitting pretty. Since INVX only currently ships 65% mr then INVX still can increase the growth by approximately 50% over last year. |
