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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (2946)	11/2/1999 5:14:00 PM
From: Mike Healy	Read Replies (1) \| Respond to of 3029

Company guidance (per conference call -- call INVX for replay #) was that revenue growth in 2000 should be "over 100%". They also indicated operating margin for 2000 "should exceed 10%". As for AFLX NOL...they referred to the $10MM+ def tax asset on the balance sheet (implication is this will turn to cash as they generate taxable income). Most interesting assertion of all was that they forecast very strong free cash flow over the next two years, sufficient to bring cash back to pre-AFLX-acquisition levels while funding cap-x AND paying off the $26MM of debt. Should be a straight-forward exercise to start with this level of cash flow generation and back into an earnings forecast...might tell us how much "more" than doubling revenue and 10% operating margins they really expect for 2000. Anyway...earlier post calling for 200mm revenue and 10% margins would seem to be at low end of mgmt expectations...also interest expense will likely come in lower than the 2mm estimate since, if CF generation as strong as they say...they will pay down debt first (from their cash and cash flow) before we see the cash balance start to rise. Company said quoting & prototying activity in flex was 4x the level a qtr ago (close to historical levels seen at Adflex before in got into trouble). Revenue in flex up 132% in qtr YOY. If INVX remotely better at forecasting new products (vs. wire leads to Seagate) then company is basically telling us they can get around the .85 cited in the last post, at a minimum -- and on a fully taxed basis (which they wont be). Some old holders (including me) know thats a big IF though.