Deswell Industries (DSWL) Message Board

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Technology Stocks : Deswell Industries (DSWL)

DSWL 3.420

+4.0%

11:36 AM EST

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To: j rector who wrote (1254)	4/16/1999 12:20:00 PM
From: Ron Bower	of 1418

j, You are right. Jetcrown is still the primary business and, unless they start having large losses, K&K becomes less important relative to Deswell's overall picture. The new machines are 'mold making machines' and don't add to production capabilities directly, but do add to the capabilities of the overall operation. Many advantages. Lower costs - Customers have to pay up front for the molds. This will improve Jetcrown's ability to compete for smaller orders. Combined with the software they added last year, the machines provide a substantial reduction in the order to production time. Another marketing advantage. A 'just in time' capability - able to use the same presses to put out a variety of products according to customer needs = better machine utilization and more efficiency. Higher quality. A big marketing advantage. Don't sell on price, sell on the low rejection rate. Ability to make more complicated molds reduces costs for the customers by reducing the number of plastic parts in a product. Another competitive advantage. If I knew more about the business, I'm sure there are even more advantages I can't think of. It looks to me that the coming year is going to be very healthy. JMHO, Ron

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