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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

579.0. "Ferrofluidics stocks" by DATABS::HUSSAIN () Thu Sep 30 1993 12:01

    Any opinions on the Ferrofluidics stock?  Any feelings as to it going
    higher or lower?
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579.1SCHOOL::DESAIThu Sep 30 1993 13:1060
         News Article: FERROFLUIDICS REPORTS FY93 LOSS AFTER
                                                               
 
         29-SEP-1993   Length: 55   lines           Businesswire

   NASHUA, N.H.--(BUSINESS WIRE)--Ferrofluidics Corporation 
(NASDAQ:FERO) today reported preliminary results for the fiscal year 
ended June 30, 1993: revenues up 11 percent to $29,623,000, gross 
profit up 5 percent to $12,114,000, and negative adjustments to 
noncurrent assets totaling $8,859,000 - resulting in an operating 
loss of $9,870,000 and a total net loss of $10,400,000 ($2.03 per 
share).  

	   The operating loss was caused principally by: (i) valuation 
adjustments of $6,359,000 relating to the Company's investments in 
affiliates; (ii) the reversal of $2,500,000 of license fees received 
from Fuji Seiki during the third and fourth quarters and accounting 
of those fees as a writedown of Ferrofluidics' investment in that 
affiliate, and (iii) the previously reported $1,050,000 restatement 
of shipments to an affiliate from revenue to inventory consigned for 
future sale, and an approximately $1,500,000 understatement of cost 
of goods sold in the Systems Division.  

	   Despite these charges, the Company, at June 30, 1993, reported 
current assets of $22,131,000, working capital of $13,092,000, total 
assets of $42,273,000, long-term debt of $7,500,000, and net worth of
$25,550,000 ($5.14 per share based on 5,418,218 shares outstanding at
June 30, 1993).  

	   For Q4 FY93, the Company reported revenues of $7,401,000 up 10 
percent from Q4 FY92, and negative adjustments to noncurrent assets totaling 
$7,359,000 - resulting in an operating loss of $8,810,000 and a total
net loss of $9,940,000.  Pursuant to a previous press release, 
operating results for the prior three quarters of FY93 will be 
restated as a result of certain of the year-end adjustments.  

	   Commented Chief Executive Officer Paul F.  Avery, Jr.: "With the 
balance sheet adjustments behind us, we, the new management, now can 
focus on building Ferrofluidics' core businesses profitably.  
Although the results are preliminary, the Company anticipates no 
further substantive adjustments to reported FY93 results."  

	   The Company's backlog now stands at approximately $12 million 
after removing a previously reported $12 million order for silicon 
crystal growing systems for China, which order was reversed due to 
heightened uncertainty as to the customer's ability to secure 
financing for the order.  

	   Ferrofluidics is the world leader in ferrofluid (magnetic fluid) 
technology.  The Company combines proprietary Ferrofluidic technology
with broad applied engineering to commercialize applications enabling
customers' products to operate more effectively and efficiently.  The
Company currently produces proprietary products for market 
applications it believes have high growth potential, including 
environmental seals, advanced materials systems, hydrodynamic 
bearings and audio speakers.  

	   -0-
NOTE TO EDITORS: FINANCIAL TABLES TO FOLLOW

579.2Is this the upswing?DATABS::HUSSAINThu Sep 30 1993 17:033
    Interesting that the stock for this company is rising at this moment. 
    It is up to 7 and 7/8.  A few weeks ago it was down to 5 and 3/4.  The
    SEC investigation is not complete yet.