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

To: Noblesse Oblige who wrote (1443)	5/4/1998 1:43:00 PM
From: dfloydr	Read Replies (1) \| Respond to of 3247

Hi N.O. et al: Ooops, that sounds like "know it all"! I mean to address N. O. and all others on the thread. Do not read anything more in to that line. AS you have noted, the TFS 10Q is out. I found the following two paragraphs particularly interesting. "During the first three months of 1998, the Company had $758,000 in negative cash flow from operations as compared with $1.6 million in positive cash flow during the first three months of 1997. The negative cash flow from operations was primarily due to a significant increase in inventories, which occurred primarily as a result of the increase in the Company's overdue backlog." As you pointed out, inventories soared. (>$4mm). I take it that the inventory numbers - which were high - and the production numbers - which could easily have been higher - taken together, confirm that the deferrals were at customer's requests and not because TFS was unable to fullfill orders. Then look at the backlog numbers. "The Company's actual backlog at the end of March 31, 1998 of $39.2 million is substantially higher than the $17.8 million that existed at March 31, 1997. In addition, at the beginning of 1998, the Company's estimated 1998 backlog of manufacturing revenue for programs currently in design was substantially greater than the estimated 1997 backlog was at the beginning of 1997. Therefore, if additional programs moving out of development begin to ramp their production levels up in 1998 as anticipated, the Company should continue its year-over-year growth rate in 1998. "continue its year-over-year growth rate in 1998" ... not much exaggeration in that line! Look at the net growth in that backlog ... more than $20 million ... or more than 1Q98 sales. I sure hope that they are genuine deferrals and not cancellations waiting to happen. If TFS ever gets to deliver that backlog ... along with some of the new orders in process ... there will be some very nice quarterly reports, especially when you throw in the "programs moving out of development". Maybe the dimensional change I have been hoping for at TFS will happen yet? Enjoy today. Floyd