Deswell Industries (DSWL) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Deswell Industries (DSWL)

DSWL 3.714

+0.4%

Nov 21 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mod who wrote (741)	5/19/1998 12:10:00 PM
From: Ron Bower	Read Replies (1) of 1418

Thread, I shouldn't post this but... In the last PR from Deswell, Mr. Lau stated that VTech represented 8% of revenue at their current run rate. I have been trying to figure out the significance of this statement. Is VTech in addition to other customers? Has this business increased revenue by 8% or has it replaced declines in sales to other customers? It's my opinion they made the announcement because VTech adds to revs. If so, it would only mean slightly higher revs for Jetcrown in the Mar Q, but the Jun Q would reflect the increase (Toshiba machines not operational until March). Increases in Jetcrown revs usually mean a proportionate increase in earnings. My conclusion is based on: The earlier release indicated the 20 Toshiba machines would be "fully utilized" when operational. Nesbett indicated the VTech order was a major plus. They had $19M in Dec Q without VTech. Raw material inventory was much higher. Mr. Lau has made very optimistic statements about growth in all of the latest PRs. They have a history of strong reports when he does this. Insiders selling stock to exercise options has been a positive indicator in the past. I have revised my guesstimates. I now have 3.9M = .69 fully diluted EPS for this Q and .85 for the Jun Q. I've raised 1998 estimate from $3.00 to $3.25. I anticipate a 50 cent dividend payable in June. I could easily put the 1998 estimate closer to $3.50, but I'm factoring a global economic downturn effect on growth. I also expect a 2.5-3% increase in dilution from stock options. This is all guesswork, Ron

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next