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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (3140)	7/24/1998 11:42:00 PM
From: Jim Switz	Read Replies (1) \| Respond to of 5944

Here's the full announcement from PaineWebber, just for the record (note that I disagree that there's been a 10% layoff; counting USA and Singapore, the total is 600 people out of 3,500 or about 17%). It's significant to note that he maintains a Buy rating based on valuation and core SCSI business turnaround. At least one analyst doesn't think "SCSI is dead" as has been hastily concluded by a number of posters to this thread and the one over on (gag) Yahoo. SAN FRANCISCO, July 24 (Reuters) - PaineWebber analyst John Lazlo said he cut fiscal 1999 and fiscal 2000 earnings estimates on Adaptec Inc., after the maker of semiconductors and data interface products reported a disappointing first quarter. -- Lazlo cut his fiscal 1999 estimate to $0.33 a share, from $0.75 a share previously, and fiscal 2000 to $0.81 a share, from $1.45 previously. -- Lazlo said Adaptec's first quarter operating results of $0.10 a share, excluding charges, and a $10 million revenue shortfall were disappointing. -- He said he believes the company's cost-cutting plans, including workforce reductions of 10 percent, expense cutting and plans to reduce its inventory shipments to distributors are not adequate in the current competitive market. -- "While management has acknowledged these issues, we need to see more action to streamline the company and refocus it on its highly profitable core SCSI business," Lazlo said in a note to clients. -- Lazlo said he is maintaining a buy rating on the stock, based on its current valuation and expectation for a rebound in the core SCSI business. SCSI (pronounced scuzzy) stands for small computer system interface products, which lets computers communicate with peripheral devices such as hard drives. -- Adaptec shares were off one to $11-1/16, after dropping to a 52-week low of $10-1/2 in active intra-session trading. REUTERS Rtr 14:22 07-24-98