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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Neil H who wrote (14899)	2/2/1999 8:43:00 AM
From: REH	Read Replies (1) \| Respond to of 93625

Singapore, Feb. 2 (Bloomberg) -- Elec & Eltek International Co., a printed circuit boards maker, expects profit and sales to expand between 15 percent to 20 percent a year for the next three to five years, Chief Executive Canice Chung said in an interview. The growth projection is higher than a forecast Chung made in September of a 10 percent to 15 percent rise in profit. In the year ended June, Elec & Eltek earned S$65.7 million ($39 million), an 11 percent gain over the previous fiscal year. The new optimism comes after company won a contract from a ''U.S. giant computer manufacturer,'' the executive said. Elec & Eltek started supplying boards to the new customer in September and October, Chung said, declining to reveal the customer's name. ''The business is growing quite nicely and they will be one of our top ten customers,'' he said. ''They would be among the top five in FY 2000.'' Analysts said the new customer could be Intel Corp., the world's biggest computer chipmaker. Intel said it would incorporate Rambus Inc.'s technology into computers using Intel microprocessors. Elec & Eltek's Chung declined to comment about Intel, except to say the company has the capability to make boards using Rambus' technology. ''Although the printed circuit boards industry is becoming rather commoditized, those who are able to do make products that are still very new will be able to see better growth,'' said Russell Tan, an analyst at DBS Investment Research Pte. in Singapore, who rates the stock ''outperform.'' Quality wise, they're moving upstream.'' Elec & Eltek is based in Hong Kong but trades its shares in Singapore. The stock closed 15 cents higher, or 2.6 percent, at US$5.95.