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.

Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: j rector who wrote (666)	4/17/1998 12:38:00 AM
From: Ron Bower	Respond to of 1418

A discussion on taxes is warranted, but don't ignore the more important numbers. Last quarter there was a 45% gross profit from operations. SG&A that includes R&D of less than 17%. A net before taxes of 22.5%. In these numbers is a very fast depreciation schedule, the maximum allowed by US GAAP for the equipment, and expenses for leasing of facilities. These are major factors against the bottom line. (Possibly a problem long term because they will have used their writeoffs against low tax rates instead of reserving them against higher rates in the future) The net earnings plus depreciation is CASH - roughly 25% over earnings. Deswell's numbers would be envied by any company. Ron I expect another wave of Asian Flu Friday. You may get your chance at the 18.50 Deswell.