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 : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: mod who wrote (762)	5/28/1998 1:28:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Dennis, Thanks. It came on my screen this morning. I have a problem in that Schwab flags my account to tell me there's been new information, but I can't access it for 2-4 hours after I know about it. Frustrating. What service do you use that lets you get the releases as they come out? I like the report. My thoughts after the first read: Kwanasia showed huge growth in the 2nd and 3rd Qs. Apparently they were pushing hard to get ahead on contracts to hedge against the 4th Q Holiday shut down. This is understandable as they can lose in excess of 25% of their production during the period. Obviously this does not represent lower sales for Kwanasia going forward as they announced a large facility expansion to be completed in September. Jetcrown's and Kwanta's growth was in spite of weaker sales to Kwanasia during the quarter. We know that part of the Jetcrown is VTech, but there must be others. Kwanta is too small for the earnings to amount to anything, but it's showing good growth and has attained profitability for the first time this Q. They generated about $3.00/share cash from operations this past year, made almost $8M in capital expenditures. Working capital surplus has increased to $6.56/share. Considering the situation throughout Asia and the reports being issued by most companies, Deswell has outperformed and should do very well this coming year. I thought they would increase dividends and (IMO) the Special is a welcome surprise. I just bought back some of the shares I had sold on the runup after the VTech report. We should see price improvement after the report is read and we get closer to dividend date. For what it's worth, Ron

To: mod who wrote (762)	5/28/1998 1:46:00 PM
From: kolo55	Respond to of 1418

Company sure puts out a quality earnings release. It covers a lot of information, and coupled with previous press releases, allows us to see whats happening with the company's business lines. There must have been a significant fall-off in the assembly business revenues this quarter from the DecQ, probably on the order of 30%. But given recent announcements about expanding Kwanasia capacity to meet new demand, this is a temporary pullback, and we should see much better revenues in the next several quarters. Stock is a buy at 18 and change, but I've filled my position. I will look to see if I can pick up a few more shares before the ex-dividend date, but I probably won't be able to. I will enjoy getting the dividends though. Paul