Newspaper article The Florida Times Union

ATC 'Bewildered' by Low Stock Performance

Newspaper article The Florida Times Union

ATC 'Bewildered' by Low Stock Performance

Article excerpt

Byline: Mark Basch, Times-Union business writer

American Technical Ceramics Corp.'s stock has been battered for two years, as weak demand for new communications products has hurt the company's performance. But President and Chief Executive Officer Victor Insetta still didn't think the stock should have fallen to a seven-year low of $2.10 in August.

"I'm just as bewildered," Insetta told investors in a conference call following ATC's year-end financial report. "We can't understand it."

ATC did report a loss of 53 cents per diluted share in the fiscal year ended June 30, compared with a profit of $1.24 the previous year, as sales fell 41 percent to $49.6 million. Its stock has plummeted from a high of $53.75 in May 2000.

But Insetta said the company has a strong balance sheet and is in a good position to profit when the market for its high-performance electronic components turns around.

Unfortunately, Insetta can't predict when business conditions will improve.

"Over a year into this downturn, we continue to have very little forward visibility, making it difficult to predict with any certainty when a turnaround may occur," he said.

ATC is based in Huntington Station, N.Y., but has a major plant in Jacksonville that employed about 275 people two years ago. The company has gone through some significant job cuts to reduce costs during the downturn. ATC won't specify how many jobs were affected, but Vice President Kathleen Kelly said the company cut its Jacksonville workforce by 50 percent in the past year.

Kelly and Insetta both said they don't expect any additional downsizing in the staff.

Winn-Dixie stake

The Davis family's ownership stake in Winn-Dixie Stores Inc. dropped from 58.8 million shares, or 41.89 percent of the supermarket chain's stock, to 57.6 million shares, or 40.99 percent, over the past year, according to the company's proxy statement filed last week.

Winn-Dixie did announce in January that a trust created by Eunice Davis McNeill, mother of Winn-Dixie director T. Wayne Davis, sold 1.2 million shares. The shares were sold to pay estate taxes following McNeill's death. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.