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To: Phillip Crone who wrote (1822)	10/29/1997 3:43:00 AM
From: douglas hurd	Respond to of 2574

Phillip, Don't disagree with you at all. I simply believe that the ability of this company to expand its business is not so much affected by the rate of growth in the PC/IT industry as it is by the operational challenges. To be more specific, managing multiple factories, expanding the work force, designing next generation products and all the baggage associated with moving from hundreds of millions in sales to billions. I certainly don't want you to think I'm getting in a pissing match with you. ("Who can piss higher up the wall" is one of the great British expressions.) I sold UPS products for 4 exciting years and I've been a stock holder for much longer. I think this company still enjoys a sheltered position in the market place. No real competition and still plenty of market share to eat up in a growing market. As for the growth rate in Asia? If it affects EPS by 1 or 2 cents I'd be surprised. But like you, I think a slow down is bad news. Enjoy Rhode Island. I was there about 8 weeks ago and it was the first time I'd been there other than at Chistmas for about four years. Douglas PS. If you're not from RI you might need a translator.

To: Phillip Crone who wrote (1822)	11/1/1997 10:35:00 PM
From: trilobyte	Read Replies (1) \| Respond to of 2574

Hi Phillip so how did the visit go? you said: "Finallly, study APCC's growth rate overseas and listen to the news about all of the turmoil in Southeast Asia and what this is going to do to demand over there, and one might want to ratchet down growth rates for APCC in 1998, I don't believe that this has been factored in yet as well as many other companies with exposure over seas." Well, analysis of the numbers may be useful before "racheting" down the growth rates estimates. In fiscal 1996, APCC had sales of 706 millions, 294 millions to foreign markets. Of these, only 52 million were to the Asia Pacific, with most of these to Japan. Only 10% of the company's FOREIGN operating profits were from Asia Pacific. Based on these numbers, it is quite clear that even if growth were to flatten out for a few quarters in this part of the world, this would really only represent a drop in APCC's bucket. I think it is much more important to guestimate the impact symmetra will have in profit margins and growth on APCC than to focus on the (now too fashionable) problems in Hong Kong. After all, Japan's market has been crumbling for the last 5 years or so and that hasn't slowed APCC's growth. Finally, I think this story is relevant to our situation: exchange2000.com Long APCC, expecting a ride to mid 30's in 98. You won't find many high tech companies which such a near monopoly on their business trading at a trailing p.e. of 20-23! Or is this a battery company? Trilobyte