Defenx Share Discussion Threads

[judgement] 21/11/2001 12:10

They said they had reduced their cost base to £700k mer month, not that their balance was being reduced by £700k per month.

Things appear to be looking up for Dataflex. IMO, it's a safe tech with negligible downside, and considerable upside. They are getting into broadband at just the right time.

[mikelangdon] 21/11/2001 11:12

Brokers forecast a profit this year of about £2 million.

[cb7] 21/11/2001 10:27

does look interesting, but the downside is that they will probably make a loss this year, with no upturn in sight the share may mark time and move sideways until prospects improve

[the jitters] 20/11/2001 15:27

LONDON (AFX) - Dataflex Holdings PLC said that since its first half profit warning in September, its cost cutting measures will reduce its cost base to 700,000 stg per month from 1.1 mln stg going into the second half of the year, although they will affect overhead costs for the first half by a significant amount.

"This places the company, together with its forecasted 15 mln stg of cash at the end of December, in a strong position to take advantage of any improvement in market conditions," it said.

Dataflex added it is on course to deliver the previously announced 3.4 mln stg DectGem product order. "Most of this order will be satisfied, into the second half year although margins are significantly lower then previously enjoyed," the company said. "In addition, Dataflex's single and multi-line products continue to sell, albeit at a lower rate than experienced in the previous half year."

It added that the market for telecoms equipment, combined with the effect of Sept 11, have delayed the company from receiving expected orders. It said its pre-paid VoIP (Voice over IP) calling card systems are "now being recommended by a number of important partners".

RNS Number:2994N
Dataflex Holdings PLC
19 November 2001

19 November 2001


DATAFLEX HOLDINGS PLC

("Dataflex" or "the Company")

TRADING UPDATE

Dataflex (LSE: DFX) reported in its 2001 Annual Report and its September 2001 AGM trading statement that sales for the first half of this year are going to be significantly lower than the previous half year. Since then the Company has reduced its headcount from 129 last June to 75 now and closed all of its UK offices with the exception of the Company's headquarters in Sutton. This will not effect the overhead cost for the first half by a significant amount, but will lower cost base from £1.1 million to £700,000 per month into the second half. This places the Company, together with its forecasted £15 million of cash at end of December, in a strong position to take advantage of any improvement in market conditions.

Dataflex continues to pursue opportunities arising from a much wider product base than it has had on offer at anytime over the past twelve months and is on course to deliver the previously announced £3.4 million DectGem product order. Most of this order will be satisfied, into the second half year although margins are significantly lower then previously enjoyed. In addition, Dataflex's single and multi-line products continue to sell, albeit at a lower rate than experienced in the previous half year.

There is a high level of interest in DectGem and the Company's other new
products from a number of potential customers, although the market for
telecoms equipment, combined with the events surrounding and following 11th September have so far delayed the Company from receiving expected orders.

There is also interest in Dataflex's Voice over IP (VoIP) access product which the Company hopes to convert into actual orders in the near future. As previously reported Voice over DSL will for the current year be limited to trials with European operators.

The Company continues to develop new products and its pre-paid VoIP calling card systems, which continue to be developed in Dataflex's Californian office, are now being recommended by a number of important partners. Dataflex will announce its interim results for the six months ending 31st December 2001 in late January, or early February 2002.

For further information:

Jacob van Houdt / Brain Jobson, Dataflex: 020 8710 1700

Richard Sunderland / Geoff Callow, GCI Financial: 020 7398 0812

END

[the jitters] 20/11/2001 02:14

Friday and today showed good volume but no actual huge volume spike yet but it looks like its brewing for one!

Chart also looks good as its just broken the roof of a downward trend and also moved out the top of a short term rectangle formation.....both bullish signals.

DOW finished very strong tonight so perhaps tomorrow is its day......I mean if bloody DUC can go nuts in a day then anythings possible, all it takes is a few buyers and the rest will follow the lead.

Phil

[stewjames] 19/11/2001 18:32

Good point. I think it does strongly suggest they're currently loss-making, though, even if the scale is unclear.

[alsfar] 19/11/2001 18:31

Yes I see. However, if you recall from the end of June, it was quoted £6,088m debtors and £11.175m creditors (within one year). The reduction in cash (reported today), could represent pretty much the whole year.

[stewjames] 19/11/2001 18:22

See todays RNS alsfar. I was comparing last stated cash balances with expected December balances mentioned today.

[alsfar] 19/11/2001 17:46

Err? which half-year are you guys refering to?
Or is it, which company? Confused.

[iantc] 19/11/2001 17:31

to cut cost ,costs money + building a portfolio of products costs money,got to speculate to acumelate as they say ,still 15m in bank and expect pickup early next year top up stew imho

[stewjames] 19/11/2001 17:12

Hmmm. Not sure I'd call a 4.5M burn in 6 months good news. Why so much?

[iantc] 19/11/2001 16:57

news pretty good and a small rise not a bad day, still think this share is low risk with poss high gain

[stewjames] 19/11/2001 08:53

Seems I should have topped up after all!

[marting1] 18/11/2001 23:11

Judgement,
didn't really know much about the company before today when they came up as I was looking for similar chart patterns, but have had a quick look at their website and they seem to have some good products which are worth further investigation. Was looking for a short-term play this week but if it works out will definitely keep some for longer term. Also agree they have been overlooked and if the tech run goes on then the spotlight may soon shine on this one and it wouldn't take much to send it to 30p plus
Cheers,
Martin

[judgement] 18/11/2001 21:48

I've been watching DFX for some time now, and decided it was worth a punt in the run up to results. Their involvement with VoIP and VoDSL(?) seem interesting, given BT's recent interest in this area. Certainly seems to have been overlooked in the recent tech surge.

[marting1] 18/11/2001 15:30

There was good money to be made on some of the small techs last week with ITK, TAD and TOA among others all posting gains of 25-40% in a day. A look at their charts will show them to be very similar with a sharp drop1-3 months ago, trading in a narrow range since then with a big volume spike in the middle of October and then a build up in volume as they approach the top of their range and break through into the gap above for large gains. A trawl through some of the other small techs has thrown up DFX as another candidate to repeat this pattern, maybe not Monday, but definitely worth watching next week. I'm not sure of the significance of the volume spike in October but interestingly it appears to be on virtually the same day and is also on a lot of other tech charts.Anyway enough of that, have a look at the charts and see what you think...

[tone] 16/11/2001 22:31

thats why a say buy and hold, if sentiment changes on this one it could
fly. If holders sell like they keep doing then the price will fall. The
CEO does not help with his statements. The downside risk in price is
low, my view is buy hold, if they go lower buy more.

[koata] 16/11/2001 22:00

take a look at IBN.

[jc111] 16/11/2001 22:00

you don't get trades like that and a subsequent increase in price and get bearish.
You go.....hmmmmmm.,....thats bloody interesting that is.
No smoke without fire

Chart wise it today BROKE its 20.27p resistance level.
Momentum is building.

D Y O R
JC

[outsider] 16/11/2001 21:58

So if they go lower tone, and say have a market cap of £10m, with £20m cash, they can afford to lose £10m & still have cash backing the market cap.

Hmmm. If you want a share with downside limited, I think this is it. but it doesn't stop there, it has plenty of upside potential.

Tone show me a better share on low risk/high reward ratio.

[tone] 16/11/2001 20:00

I can tell you that they have cash, but are going down down down.
They are basically a reseller of equipt, Just look at MONI to
see how quick a company like this can fall. Trades don't look
good either, people are selling on the highs. I watch, but I
think these may go lower, unless of course holders sentiment
changes. imho a buy and hold, wil be suprised if we have a rush,

[alsfar] 16/11/2001 17:32

Problem with this stock, is that the current market valuation is just so hard to believe. I think everyone gets the feeling that something hidden must be wrong here. It is true that the call-router business has declined and alot depends on future products, but there are plenty of companies out there, still valued much more highly than DFX on nothing but future hope.

I keep waiting for someone to explain, 'Ah yes, but didn't you know ...etc...'. So, if anyone is going to do that, please do it soon, because greed is about to overcome fear again and I'm quite likely to buy more.

[stewjames] 16/11/2001 16:49

iantc, completely agree IF it's still a profit making company. Impossible to know. Thought about topping up today but need to think about it a bit more.

[iantc] 16/11/2001 16:38

topped up again this morning some nice trades today .maybe investers taking notice that dfx is a profit making company and has cash. a screeming buy if you ask me

[jc111] 16/11/2001 16:28

Some BIG trades going through....
Pressure building up.
Could be interesting next week.
JC