Kent, Here's your news: AFLX estimates that it will come in at ($0.03)/share for quarter one versus an estimated $0.00/share.
I rate this press release as neutral since two customers did have two problems unrelated to AFLX which will pull down revenues. Sounds like one other customer slowed eliveries. Looks like the customers were in Asia and sounds like they weren't quite ready to take delivery of components from the expanded Thai Facility- my best guess "reading between the lines".
On the other hand VP Frederick says that business is otherwise improving across several other segments and customers- that is very good. Bummer because it looked like we were headed for another upside earnings surprise.
In any case ($0.03) would be a sequential improvement from ($0.09) last quarter. Let's see how the market takes it. if we rally or go sideways then we may be near a bottom. If we drop some more then wait to buy a little while,,,,,
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Related QuotesAFLX
4
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delayed 20 mins - disclaimer
Thursday March 4, 8:27 pm Eastern Time
Company Press Release
ADFlex Anticipates First-Quarter Loss
CHANDLER, Ariz.--(BUSINESS WIRE)--March 4, 1999--ADFlex Solutions Inc. (Nasdaq NM:AFLX - news) Thursday announced that, based on preliminary results, the company expects to report lower revenues and an operating loss for the quarter which ends March 28, 1999.
The anticipated results are in part attributable to lower-than-expected revenues due to delays in new product introductions by two customers.
ADFlex Chief Financial Officer Don Frederick stated: ''We estimate that revenues for the first quarter of 1999 will be approximately 18% lower than the previous quarter due in part to technical difficulties by two OEM customers that precluded them from maintaining original delivery schedules. These difficulties were unrelated to ADFlex's activities and have been subsequently resolved.''
Additionally he said: ''One other customer experienced inventory adjustments, and aggressive price competition continues. The impact of the new product delays is particularly disappointing since it masks a recovery being experienced by other customers across several applications and product segments. The first-quarter 1999 delays are, we believe, a one-time problem associated with these specific programs.''
Earlier ADFlex obtained full certification for its new production facility in Thailand and thus is poised to rapidly ramp into volume production all products impacted by the technical delays referenced above. The company is in a good position to supply a greater share of customers' requirements through its integrated flex fabrication and assembly One-Stop-Shop strategy.
ADFlex Solutions is a leading supplier of flexible circuit-based interconnect Solutions to the computer, computer peripheral, communication and other industries. Applications for flex-based interconnects include cellular telephones, hard disk drives and other storage systems, high-end consumer products, notebook computers, pagers and personal communications systems.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical facts may contain forward-looking statements that involve risks and uncertainties, including, but not limited to, continuing risks related to customers and markets, including technical difficulties experienced by the company's customers that result in delays and push-out of products into subsequent quarters, thereby adversely affecting the company's operating results; the ability of the company to achieve and maintain broad-based customer demand and growth and to mitigate demand variations in the industries and customers served by the company; risks of continuing price pressures and reduced demand; risk that the one-stop-strategy will not result in a greater share of customers' flex requirements; and other risks detailed in the company's annual report on Form 10-K for the year ended Dec. 31, 1997, and form 10-Q for the quarters ended March 31, 1998, June 30, 1998 and Sept. 30, 1998, and other Securities and Exchange Commission filings. |
