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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (2409)	4/21/1998 5:47:00 PM
From: Shane M	Read Replies (1) \| Respond to of 3029

Daniel, I'm glad I got out of INVX when I did. The big drop in revenue and the margin shrinkage really surprised me. I had expected both to occur, but not to such a large degree. If this persists Earnings will be significantly lower. This on top of the HIF/TSA uncertainty is enough to make me a by-stander for now. Will likely get back in on a sizeable dip in price. The most significant info in the press release IMO The lower gross and net margins, as compared to the prior year, are primarily due to decreased unit volumes of lead wire assemblies produced during the quarter and the start up costs related to the new high volume production facility at Litchfield Precision Components. Innovex expects improvements in both areas as unit volumes increase through the remainder of the fiscal year. Yields at the new facility are ahead of expectations and Litchfield's operations have remained profitable even after start up costs and depreciation. This paragraph leaves the impression that margins and revenues should pick back up soon. Haven't listened to the conference call yet, but plan to. Shane