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

To: Ron Bower who wrote (1161)	1/19/1999 10:44:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Wednesday January 20 1999 Earnings fears take toll on VTech's share value STEWART OLDFIELD Shares in VTech Holdings have fallen 13.55 per cent in a fortnight in part because of fears the consumer-electronics maker's second-half earnings would not match strong gains in the first half. VTech was the darling of the stock market last year, rising 47.92 per cent against a 6.28 per cent drop in the Hang Seng Index over the same period. Yesterday, VTech shares ended 1.29 per cent lower at $30.60, compared with a high of $35.40 on January 6. Most analysts still have to buy recommendations on the stock, but there have been rumours that sales of its high-frequency cordless telephones in the post-Christmas reordering period have been unable to match their phenomenal first-half performance. VTech finance managing director William Ho Mook-lam said there had been no significant drop in sales in the second half. The company had encountered increased competition in the post-Christmas restocking period, he said. However, the increased sales of such competitors as General Electric appeared to be coming at the expense of other competitors, not VTech. VTech claims more than 50 per cent market share of the United States high-frequency cordless telephone market. For the first half, VTech reported sales of telecommunication products increased 58.6 per cent to US$281.1 million, with total sales at $505.7 million. Profit attributable to shareholders increased 49.2 per cent. One analyst said he was sticking to his prediction of 60 per cent growth for the full year. At less than 10 times this year's forecast earnings, the counter remained good value, he said.