IMSX - International Manufacturing Services Message Board

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Technology Stocks : IMSX - International Manufacturing Services

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To: JimieA who wrote (65)	8/2/1998 7:37:00 AM
From: JimieA	of 69

In IMS's recent 10-K "For the quarter ended April 30, 1998, Maxtor and Bay Networks accounted for 38.0% and 21.0% of total revenues, respectively. Based on orders to date and current forecasts, the Company expects revenues derived from sales to Bay Networks to decline significantly both in absolute dollars and as a percentage of total revenues for the quarter ending July 31, 1998." Also, "While the Company expects its operations to grow in fiscal 1999, it expects gross margins to decline significantly in the period due to a decline in sales to customers in the data communications industry and an increase in sales to customers in the computer peripherals industry." With revenues from Bay Networks (21% of revenues) expected to be down significantly! IMS's words. And gross margins expected to decline significantly! Again IMS's words. I would expect that the most recent quarter will be bad. Expected EPS of $.18 an increase from the $.15 for the quarter ended 98/01/31 will probably be missed. If IMS warns, then a warning should be forthcoming. Either way the stock price will probably go down.

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