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Technology Stocks : AULT: The unnoticed superstar -- Ignore unavailable to you. Want to Upgrade?

To: Jazz102 who wrote (277)	9/27/1998 3:35:00 PM
From: neverenough	Read Replies (1) \| Respond to of 369

The upside looks pretty good from here... Ault, Inc. (AULT) March 1998 - Current price: $4.8125 bid smallcapinvestor.com AULT'S FIRST QUARTER EARNINGS BEAT ESTIMATES BY 83% On July 22, after reporting fourth quarter earnings, the president of AULT said that "fiscal 1999 is expected to be a stronger year for Ault, reflecting anticipated contributions from important new initiatives in the networking, ASDL modem, wireless communications and medical markets. Since shipments of power supplies for several of these significant new programs are scheduled to commence later in the fiscal year, the Company currently expects only a moderate profit improvement in the first quarter of 1999 in comparison to the year-earlier period. At this time, the second half of fiscal 1999 is shaping up as a significantly stronger period than the first six months." Based on that statement, I was expecting first quarter earnings of perhaps $0.03 or $0.04, compared to $0.02 in last year's first quarter. And the one analyst estimate listed on Zacks was for $0.06. But earnings turned out to be much better than that. On Wednesday, AULT reported net income of $475,000 or $0.11 share for the first quarter of fiscal 1999 which ended on August 30. And net sales increased 20% to $11,337,000, from $9,423,000 in the comparable period of fiscal 1998. According to the press release, sales of switching power supplies to OEMs of new-generation cable modems generated a substantial portion of AULT's first quarter sales growth. However, virtually every other sector of the company's business met or exceeded budgeted sales levels, including switching power supplies for medical equipment. Reflecting the shift in the sales mix toward higher-margin switching power supplies, the first quarter gross margin rose to 27.0%, from 23.4% in the year-earlier period. Frederick M. Green, president and chief executive officer, said cable modem OEMs have largely solved the infrastructure and installation-related problems that impeded sales of this high-speed data communications product over the past 12 to 18 months. As a result, he continued, shipments of switching power supplies for cable modems appear poised to start meeting the aggressive growth forecasts of Ault's customers. Green added that the sales mix shift toward switching power supplies and resulting margin expansion clearly indicate how the Company is positioned to benefit from the growth of its targeted data communications, telecommunications and medical markets. Green also said that the strong first quarter operating results strengthen his belief that Ault is on track toward posting solid sales and earnings growth for the first half and all of fiscal 1999. AULT shares jumped 33% on the news but still appear to be extremely undervalued. AULT shares had been hit hard in recent months and even with this gain, they still have to gain another 70% to get back to their 1998 high. Press release: newsvest.com