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Technology Stocks : Praegitzer Industries (PGTZ) -- Ignore unavailable to you. Want to Upgrade?

To: Rumblinrob who wrote (158)	4/21/1998 6:58:00 PM
From: rich evans	Read Replies (2) \| Respond to of 196

Pgtz reported 14 cents a share. Sequentially sales were down to about 44 million. Some softness April but not too bad. More shares oustanding to 12.7 million. Gross margins down from 22 to 20.Operating margins therefore down to 8%. No profits yet from Huntsville or Malaysia which need more cap ex to get fully operatonal.Pricing Pressures exist with average layer count at 7 which = about 50% of business.At 70% cap utilization. See Q4 at 49-53 million which should help margins some but SGA expenses expected to stay same. Tax rate at 35% in Q4 and going to statutory rate next year 37-38%. Interest up as debt up because of Huntsville and high Capex of 21.7 mill total. Also inventory is up because of pushouts.CPQ is large customer whose business has slowed and pushed out.Main competition is HDCO. Sees continued gloabalization and consolidation in industy and higher tech requiring larger players of which TAIWAN will be one global player. Rich