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Technology Stocks : Reliability Inc (REAL) -- Ignore unavailable to you. Want to Upgrade?

To: Shane M who wrote (477)	5/8/1998 7:47:00 PM
From: Oompapa	Read Replies (1) \| Respond to of 542

From the Individual Investor site. Members can ask the in house brokers on various stocks....as follows... Subject: Re: Reliabilty (REAL) Topic: Jim Capozzola Author: jcapozzola Date: 05/04/98 11:50:03 You're right, Reliability Inc. (Nasdaq: REAL) did have a strong first quarter and the stock has stayed at $12.00-$12.50. The company said on April 22 that it earned $1.8 million, $0.29 per share, on revenues of $11.5 million, compared with $0.7 million, $0.09 per share, on revenues of $6.7 million in the year-ago quarter. When it announced the results, Reliability added that it had record new-order bookings of $14 million in the quarter, which pushed the backlog to a record $16.7 million. Remember, though, investing is about looking forward, and the company has taken a cautious stance regarding the second quarter. Reliability's management expects earnings of $0.16 per share, sharply lower than the $0.35 per share earned in the second quarter of 1997, because of the supply-and-demand imbalance that currently exists for certain semiconductors. But Reliability said it should be in a position to begin shipping a large portion of the first-quarter backlog in the third quarter and continues to expect higher revenues in 1998 than in 1997 (when they were $47.2 million). The company did not issue a full-year earnings forecast. Although I don't follow this company, it would appear that like so many other semiconductor and semiconductor-related stocks, the Reliability's near-term performance is constrained by the market's search for more promising investment opportunities. Moreover, being an under-followed micro-cap stock (equity market cap: $75 million) doesn't help in the current large-cap-oriented investment environment For those who don't know, Realiability, based in Houston, manufactures burn-in and test equipment, automatic loading and unloading equipment, and other peripherals for sale to manufacturers and users of integrated circuits. The company also manufactures a line of power sources, including DC-to-DC power converters, and provides conditioning and testing services for integrated circuits in Singapore.