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.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Anything goes -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (17180)	5/13/1998 9:20:00 AM
From: Nathan G	Read Replies (1) \| Respond to of 34592

UPDATE) ViaGrafix Shares Skid To New Low On Report Of Weak 2nd-Quarter Sales Dow Jones Online News, Tuesday, May 12, 1998 at 17:53 By Christopher Bowe, Staff Writer NEW YORK -(Dow Jones)- ViaGrafix Corp. stock fell 23% and set a post-offering low Tuesday after Southwest Securities Inc. issued a research note indicating the company's second-quarter sales would be weaker than expected. ViaGrafix, based in Pryor, Okla., makes technology-training and graphics-software products. Southwest, the lead underwriter for ViaGrafix's initial offering in March, cut its earnings estimate for the quarter ending June to seven cents a share from 12 cents, citing slowing retail sales in April and May. ViaGrafix (VIAX) shares closed Tuesday at $7.75, down $3.063, or 28%, on volume of 299,200 shares. Average daily volume is 74,000 shares. Earlier in the session, the stock hit a postoffering low of $8.50, passing the low of $10.50 set May 5. The IPO was priced at $13 in March. The company earned nine cents a share in the year-earlier period on sales of $3.2 million. Southwest also said ViaGrafix's slowing sales could be early fallout from Microsoft Corp.'s (MSFT) antitrust battle with the Justice Department, which is delaying the release of the Windows 98 operating system. "Sales weakness has been driven in part by uncertainty surrounding the release schedule for Windows 98," Southwest analyst Vincent Colicchio said. "They're feeling the brunt of that." The company confirmed that the Windows 98 debacle had affected its business. Third-quarter earnings should be slightly better at 13 cents a share, Colicchio said. Southwest also reduced earnings estimates for ViaGrafix's next three years, trimming its fiscal 1998 earnings estimate for the company to 45 cents a share from 51 cents. Citing weaker projected sales and slimming operating margin, Colicchio also cut 1999 earnings forecast to 65 cents a share from 71 cents, and his 2000 estimate to 95 cents from 96 cents. The company posted earnings of 45 cents share on sales of $13.7 million in 1997. Southwest kept its "buy" recommendation on ViaGrafix, but cut its 12-to-18 month price target to $16 from $18. -Christopher Bowe; 201-938-5099 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved. Companies or Securities discussed in this article: Symbol Name NASDAQ:VIAX c 1998 Quote.com, Inc. All Rights Reserved.