Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Pen Intercom (PENC) - Ready to fly? -- Ignore unavailable to you. Want to Upgrade?

To: Plaything who wrote (32)	2/8/1998 3:21:00 PM
From: Andrew Hunter	Read Replies (1) \| Respond to of 107

To view an interactive investor packet for this company go to: virtualir.com ====================================================================== Pen Interconnect, Inc (NASDAQ: PENC) is a total interconnection solution provider offering custom cable and harness interconnections, mobile satellite equipment, manufacturing and custom design of power supplies and battery chargers for original equipment manufacturers. The Company is comprised of four separate business units, each specializing in interconnection products for the electronic industry: * Pen Technology, which is engaged in custom cable manufacturing and other specialty items. * InCirT Tech Technology, which is a full service contract manufacturing company with the capacity to produce products through various stages of production, from prototype through finished goods. * PowerStream Technology, which is engaged in power supply/battery charger design and manufacturing. * Mobile Interconnect, which is engaged in mobile satellite receiving systems. Each division ISO 9002, CSA, and UL certified, along with being in compliance with FDA GMP manufacturing requirements. PENC has really evolved as a niche player, in each of their areas of expertise, allowing them to act more like a consumer monopoly in a consumer commodity industry. Their engineering staff has repeatedly been able to develop and manufacture 'value added', or customized products, that meet a client's specific needs, at a turn-around rate that is far below industry standards and with profit margins that are normally higher than common, mass produced, items. The Company has an extensive list of clientele, which include, but are not limited to, IBM, Unisys, Motorola, Rockwell, US Robotics (now 3COM), TDK, Compaq, L3 Communications (formerly Lockheed Martin) and Sun Microsystems. They maintain customer acceptance quality levels of greater than 99% and have been recipients of a number of Corporate Supplier Excellence Awards. Fundamentally, Pen is stronger now than it has been in a few years. They have implemented some necessary downsizing programs, which have cut staff and discarded some unprofitable divisions. The Company has been able to obtain some much needed funding, which helped with some debt refinancing and cash infusions and also aided them in cleaning up their books. The Company recently announced that its fiscal year 1998 first quarter results were 45% better than originally forecasted by management and that its revenues grew to over $3,900,000 from a weak fiscal year 1997 fourth quarter. Net sales of $3,904,717 were reported for the first quarter of fiscal year 1998 as compared to $5,258,386 for the first quarter of fiscal year 1997. The sales decrease was partially due to the sale of its San Jose Division in the first quarter of 1997, which had contributed over $7 million in revenues in the preceding year. The Company had a loss for the quarter of $34,166 as compared to earnings of $62, 285 for the same quarter in 1997. The loss per share for the first quarter of 1998 was less than $0.01 as compared to earnings of $0.02 in the same quarter in 1997. The loss for the quarter was less than expected and was a significant improvement over the fourth quarter of 1997. Management is very optimistic about the prospects for the fiscal year 1998 as it enters the year with the new term loans, new revolving line of credit, new contracts in hand and a focus on higher margin products from the engineered products division. The Company is enhancing its high volume off-shore manufacturing capability for all of its various products and divisions as it shifts its focus in the USA to handling prototyping and low to medium volume manufacturing quantities. In addition the Moto-Sat division has been working diligently on its new, soon to be announced, full in-motion satellite positioning system. This, along with the reduced cost and selling price of the standard system, should expand the market size significantly and make Moto-Sat a growing and profitable division. PENC is also strengthening its sales force through the use of sales reps and direct sales support from the factory locations, and special focus will be made in the Engineered Products area to rapidly expand to higher margin products. There will also be more emphasis placed on the intelligent cable area as that is a high growth segment of the cable business. PENC last traded at: 2 5/8 (It was mentioned earlier this week at 2 7/16)