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Technology Stocks : Artesyn Technologies (ATSN) -- Ignore unavailable to you. Want to Upgrade?

To: Mark099 who wrote (571)	12/18/2000 11:07:03 AM
From: JakeStraw	Respond to of 603

biz.yahoo.com "Artesyn pre-announced lower FY4Q:00 Revenue and EPS due to continued component shortages (tantalum capacitors and magnetics) and delayed shipments to customers,'' said Dunne. ``The company expects FY4Q:00 revenues and EPS to be $170MM-180MM and $0.22-$0.25 respectively, well below our original estimates of $193.6MM and $0.39. We are taking a more conservative stance and lowering our Cash EPS estimates to $0.23 and $1.30 in FY4Q:00 and FY:01, respectively, to reflect continued shortages and manufacturing inefficiencies, and a less robust economy. Our revised FY:01 revenue estimate of $775MM-$780MM (vs. $855MM) represents 15% growth, the third year of improving revenue growth for the company, though lower than its peer group. We estimate manufacturing inefficiencies and increased material costs, which could persist until FY2Q:01, represented $2MM-$3MM in incremental costs in FY4Q:00. We are maintaining our LTA rating to reflect continued skepticism of management's ability to execute in this challenging environment and greater exposure to the computing market (45% FY:99 Revenues) compared to its peers. ATSN is currently trading for 11.9x CY:01 Cash EPS, a 50% discount to its peer group, which has greater exposure to communications markets and has illustrated greater capabilities in procuring components."