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To: JimieA who wrote (2029)	6/18/1998 12:06:00 AM
From: trilobyte	Read Replies (1) \| Respond to of 2574

Jim, This discussion is long overdue? i didn't start it... some of us noticed the increase the day earnings were released. we're simply responding to a recent post. I'll just point out the following numbers: Inventories (1000): Dec 96: 130 443 Mar 97: 159 613 +22% Inventories (1000): Dec 97: 104 171 Mar 98: 130 894 +26% So the increase in inventory is more likely due to the company selling cycle than poor management. Based on your logic, the inventory increase last year would not have been due to increasing sales: not. Sale increase was strong in 97, and continues to be strong. As for poor asset management, you are entitled to your opinion. I would rather focus on the fact that APCC sales in the first quarter of 97 were 172 millions and that they're now (1Q98) 219 millions. So inventory went from 92% of sales to 60%. Doesn't seem like poor management to me. Trilobyte

To: JimieA who wrote (2029)	8/4/1998 1:57:00 AM
From: Larry Abrams	Read Replies (2) \| Respond to of 2574

Inventory problem is getting worse. From 1Q to 2Q inventory increased 52% from 130.9M to 199.8M while CGS increased only 17.9% from 120.9M to 142.4M Turnover decreased from 3.7 times to 2.9 times. Compare this with, say, HP, whose latest turnover ration was 4.9 times Target for a computer and computer-related manufacturer should be 5 to 6 times. Anticipated sales in the second half is not sufficient justification for APCC's levels. What gives?

To: JimieA who wrote (2029)	2/13/1999 8:21:00 PM
From: Mark Marcellus	Read Replies (1) \| Respond to of 2574

There hasn't been much mention of APC's inventory levels lately, but in looking at the company it's my major concern. In last year's 10-k, management said the following: Inventories decreased substantially during 1997 due to operational improvements relating to component and finished goods planning, combined with work-in-process reductions associated with the company's conversion to lean cellular manufacturing. Inventory turnover was 4.1 turns for 1997, 2.9 turns for 1996, and 2.4 turns for 1995. Accordingly, inventory levels declined as a percentage of sales from 104% in the fourth quarter of 1995 to 62% in the fourth quarter of 1996 and 41% in the fourth quarter of 1997. It seems that 1997 was a high water mark. With the exception of a slight improvement in Q3, 1998 inventories have ballooned in relation to sales, and the Q4 comparisons are awful. DSI is 118 days vs. 69 days last year, and inventory as a percentage of sales is 71.7% vs 41.4%. Inventory turns were 3.7 for 1998 vs. 4.1 for 1997, and there's every indication this will get worse. So what happened to those "operational improvements" which were made in 1997? Why is WIP still so high? This looks like a great company, but great companies usually do a much better job managing their inventories. What am I missing? FWIW, Mark