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Technology Stocks : Deswell Industries (DSWL)
DSWL 3.480-0.9%Nov 14 9:30 AM EST

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To: j rector who wrote (795)6/9/1998 12:34:00 AM
From: Ron Bower  Read Replies (1) of 1418
 
j,

My calculations for a probable growth. I think this is a conservative approach to the next Q. I continued Jetcrown's growth because the Toshiba machines were added in March and the VTech production should be in full swing. I've dropped Kwanasia the 19% of the last Q even though I think it will be stronger. For Kwanta, I've given the same growth as in the last Q.

Jetcrown growth in 4Q was 34%. The Toshiba machines into service in March - estimate 34% growth for this Q = $10.8M

Kwanasia in 4Q was down -19.7% To reflect possible continued downturn, will continue the 19.7% drop from 1Q97 = $5.13M

Continuation of the same sales growth for Kwanta would be $4.2M. This would increase the percentage of sales from Kwanta to 20% because of the decline in Kwanasia sales, but it would only provide .5M to earnings.

This would give rev total of $20.13M. or a 36% overall growth '98 to '97 first Qs, primarily due to Jetcrown.
Estimating 40% gross operating profit = $8.1M
Deduct GSA of $3.4M
Interest income cancels taxes
Minority interest flat to 4Q = $0.650
Leaves a net income projection of $4
EPS projection of $0.73 for the Q.

FWIW,
Ron
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