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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: jaspert who wrote (798)	1/21/1998 4:46:00 PM
From: Yong Bradley	Respond to of 3247

biz.yahoo.com

To: jaspert who wrote (798)	1/21/1998 4:53:00 PM
From: Noblesse Oblige	Read Replies (2) \| Respond to of 3247

To the "thread," TFS has reported fourth quarter earnings that exceeded all "Street" estimates, my own included, as the company logged $ .23 for the period on approximately $ 25.7 million in revenues. The press release has some other interesting "tidbits" for holders as well: 1)Buchanan indicates that TFS has completed the development of a world-wide sales team that gives the firm a presence in every quadrant of the United States and in Europe. In addition, the sales team secured a "number of important design wins in 1997, including those from two new customers that are leaders in the telecommunications market." I am only guessing, of course, but it certainly is possible that TFS was able to collect some business from cellular phone firms other than Motorola following Motorola's decision to conduct some exploratory business with Kopin. 2) Revenue from the primary customer accounted for less than 35% of total revenues in 1997. However, early indications from Motorola is that business could substantially increase during calendar 1998, but TFS has noted that the "customer should not account for more than 50% of Three Five's revenue in 1998." It appears to me that this indicates the orders from Motorola may prove to be huge in 1998. 3) Backlog is significantly higher than a year ago. 4) TFS will open a manufacturing facility in China during calendar 1998. 5) Total 1998 revenue growth is expected to be similar to 1997's. It isn't clear to me whether management means to indicate that the raw dollar sales increase will be the same, or whether the percentage growth will be similar. I expect that this question may be cleared up on the conference call. 6) First quarter 1998 revenues (which appear to be affected by seasonality for the first time according to TFS) should approximate 19% (or perhaps slightly less) of the total year's revenues, with roughly the same sales percentage breakdown by quarter in 1998 as was the case in 1997. This indicates an explosive 1998 second half. 7) TFS indicates that it participates "little" in the Far East at the present moment. 8) LCid and LCad are expected to generate revenues in 1998. Customer interest in LCoS (which will generate revenue in 1999) was described as having generated "evaluation agreements with several key potential customers." I will post more followng the conference call, but these were the early highlights. Congratulations to the "team" at TFS for turning in a very good quarter and highlighting a pertinent roadmap to the company's intentions over the next year or two. Have a good afternoon.