Vinh, despite the fact that "external sales of vision may account for less than 10% of ESI sales", I feel this is a growth segment I would not like to see fail. Slow sales at this stage do not indicate failure though. Still, this impression carried over from Cognex must have an impact on ESI share price.
Cognex Corp. (CGNX) 15 5/8 -3/8: --UPDATE-- Gruntal & Co. maintains designer and manufacturer of vision machines for gauging, guidance, identification, and inspection tasks at "strong buy" despite yesterday's negative pre-announcement; CGNX still expects the year to be highly profitable and is continuing to invest at its planned levels; orders are not being cancelled but there is simply a lower level of orders which is a positive under current circumstances; machine vision economics are becoming more compelling in a greater number of applications and CGNX maintains strong competitive position; however, in light of current outlook for the remainder of 1998, earnings estimates and price target are currently under review.....
Cognex Corp. (CGNX) 15 13/16 -3/16: Adams Harkness lowers estimates for designer and manufacturer of vision machines for gauging, guidance, identification, and inspection tasks following yesterday's earnings warning; 1998 revenues are expected to be about $10 mln below 1997 and net income 20% below last year; continues to rate issue "attractive" buts cuts FY98 EPS from $0.95 to $0.75 and FY99 from $1.20 to $0.90 a share....
On the other hand, looking at Kemet they are seeing bookings down. Do you see a trend in capacitors, and is this a problem? I believe you are bullish on the capcitor side of the business, but does this worry you at all?
KEMET Corp (KMET) 15 7/16 -21/32: manufacturer of tantalum and multilayer ceramic capacitors plans to cut its U.S./Mexico workforce; expects reductions to save about $14 mln annually. Company says does not expect to see positive yr/yr revenue growth until Q4 FY99. Says capacitor bookings/shipments down 20% from early in qtr...
Regards,
Mark |
