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Technology Stocks : ADFLEX SOLUTIONS ( AFLX ) -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (331)	4/22/1998 9:26:00 PM
From: add	Read Replies (1) \| Respond to of 718

Here is the data from this quarter and from the annual statement: Three Months Ended 12 Months Ended Dec. 31, Dec. 31, (in millions except per-share data) 1997 1996 1997 1996 Net Sales $ 54.4 $ 46.8 $ 213.9 $ 156.8 Operating Income (Loss) $ 5.2 $ 1.3 $ 14.6 $ (33.7) Net Income (Loss) $ 3.2 $ 0.5 $ 8.6 $ (25.0) Earnings (Loss) Per Diluted Share $ 0.36 $ 0.05 $ 0.97 $ (2.92) Weighted Average Diluted Shares and Equivalents (in thousands) 8,988 8,694 8,894 8,590 ADFLEX SOLUTIONS INC. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per-share data) Three Months Ended March 31, 1998 1997 Net sales $50,023 $48,221 Cost of sales 39,505 40,789 Gross profit 10,518 7,432 Operating expenses Engineering, selling & administrative 6,019 5,585 Amortization of intangible assets 129 -- Total operating expenses 6,148 5,585 Operating income 4,370 1,847 Other income (expense), net (717) (635) Income before income taxes 3,653 1,212 Income taxes 1,022 339 Net income $2,631 $873 Net income (loss) per share: Basic $0.30 $0.10 Diluted $0.30 $0.10 Number of shares used in computing net income (loss) per share: Basic 8,805 8,666 Diluted 8,923 8,767 Synopsis: Sequentially, Revenues down 8%, OpInc down 15%, NetInc Down 18%. But, AFLX beats estimates of . Predict earnings to be $1.30 - $1.50 which would be a nice 30%-50% bump from last year although both top line and bottom line growth rate does not look sustainable. A big question is how much can we discount the last quarter, is it a one quarter downturn or a one year downturn in the industry ? I'm being optimistic, assuming a 20% growth rate this year, then a P/E of 20 should not be unreasonable. We should logically see $26-$30 based on projected earnings for this year. This stock should not be trading below $25 by Friday.