KTCC quarter
1. The new power equip customer has slowed down their orders for the June quarter, thus the revenue drop guidance. However new orders are coming in for both the September and December quarter which should bring sales back up .. all else equal.
2. They had a .03/share insurance gain for the quarter, so imo, adjusted earnings were really .15/share for the March quarter.
3. They did say they took a hit on fx as the Peso was stronger v the USD. However, that has continued and they expect a similar impact in the June quarter.
4. They were hit by a difficult labor market in the March qtr, and that has gotten better for the June quarter. Of course, seems like that effect is in their guidance.
5. Obviously growing interest expense hit them, and will continue.
6. June quarter should show reduced inventory.
7. They said judging by their biz and all the strong activity, they do not see recessionary effects. Flip side is Gates did say that prior to the March quarter, they were only seeing customers requesting orders from future dates pulled in to current dates. Now seeing about an even amount being pushed out and pulled in. Maybe some recessionary green sprouts?
8. Their debt has gone up crazzzzily, otherwise they'd be printing money... but they did say they'd be paying some down going forward.
BTW... and this is sort of irrelevant, but a year or two back, no KTCC investor would have thought that at $160 million plus revenue per quarter, they would only be able to make drive .15/share to the bottom line. I remember analysts (Dezellum and others) saying things on the call to Gates (Dezellum and others), like...'so, if these new wins come through, my calculations show you should be making .30/share/qtr... does that seem right to you..'. Of course the huge increase in debt and interest rates hurts bigtime.
