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Technology Stocks : Power-One (PWER) -- Ignore unavailable to you. Want to Upgrade?

To: Walkingshadow who wrote (251)	10/25/2000 8:59:38 PM
From: cfoe	Read Replies (2) \| Respond to of 285

I just finished listening to a replay of the earnings conference call. It is available at: biz.yahoo.com I cannot recommend more emphatically that any fundamental investor in PWER (vs. mo-mo investor) listen to this call. I no longer take notes on calls, since it keeps me from concentrating on what the speakers are saying. However, here are my impressions. First, the new disclosure rules seem to be working in investors' favor. Management said that they were (and would continue) to give more detail on calls given the new rules. They certainly sounded forthcoming on this call. I came away from the call with the following conclusions (which I offer at the risk of coming across as a cheerleader, since they are quite positive): > The sell-off today had nothing, absolutely nothing, to do with the fundamentals of this company. > All the headline attention on "flat gross margin" and apparent concern over this was very clearly answered. My conclusion is it is a non-issue going forward. Note - the analysts asked a lot of questions here and they were answered very fully. > Guidance was raised for FY02 from (what I could gather) $1.24 cash eps to $1.33-$1.35. Management said a couple of times they felt the new guidance was conservative in keeping with their practice. > "Slowdown" announced by NT will have no effect on them for two reasons - 1) they cannot fulfill all the orders right now. Any such slowdown, if it really happens, would only decrease the amount of orders they cannot fill now; and 2) even with a company like NT, they are working on the kind of projects and products which should see continued strong growth. > Acknowledged Cisco and major custoemr and said they seem to be a "first-mover" into the new technologies that demand the kind of power management devices that PWER provides. Next tier of companies are now moving into these technologies and moving PWER's way. Must leave now. More will follow later.