PDA Engineering, COSTA MESA

Researched by DALLAS M. JACKSON/Los Angeles Times

Nature of Business: Computer-aided engineering software, services and technology.

Employees Total: 245

In Orange County: 170

Stock Listed in the Times: "PDA" on NASDAQ

Ticker Symbol: "PDAS"

Friday's Stock Close: $10.25

One-Week Change: None

Analyst Review: "PDA introduced an exciting new product Oct. 1: PATRAN 3. While they have goals for maintaining revenue growth, the big story is rolling out this new product; they're going to have a down first quarter because of increases in expenses from the new product rollout. They've bet the whole company on it--they have put $30 million into it. But these are smart guys. It's not a question of whether or not the product will sell; I'm assuming there's demand for it. The real challenge is pricing it to balance the trade-off between market share versus profitability. This stock is for a growth-oriented investor who is willing to take the inherent risks in dealing with a small company. We think there will be exciting opportunities over the next 12 to 18 months.

--Paul I. Bloom, analyst, Volpe, Welty & Co. San Francisco

Sales vs. Profits (Dollar amounts in millions.)

1. Qtr. 1 Qtr. '89 '90 '91 '91 '92 Sales $27.3 $31.4 $36.3 $8.2 $8.5 Profits $1.6 $2.2 $2.9 $.42 $.26

Corporate Outlook: "Our bottom-line orientation is superior products and services and consistent financial performance for our shareholders. We're very enthusiastic about the introduction of PATRAN 3. It is a next-generation computer-aided engineering software, used by manufacturers to bring products to market more quickly. It simulates and analyzes the performance of a product before a prototype is even built. We'll begin shipping it in March."

James W. Kerrigan, vice president/CFO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending June 30 June 30 June 30 1 Qtr. 1 Qtr. '89 '90 '91 '91 '92 52-Week High $5.25 $7.88 $13.13 $8.00 $11.25 52-Week Low $3.00 $3.50 $5.25 $6.00 $9.00 Book Value Per Share* $3.81 $4.38 $5.03 $4.52 $5.22 Net Earnings (Loss) Per Share* $0.39 $0.50 $0.62 $0.09 $0.05 Price-to-Earnings Ratio 12:1 15:1 16:1 4:1 13:1 Avg. Return on Investor Equity 11% 12% 14% 9% 6%

* Book value is the difference between a company's assets and its liabilities.

For more information call or write, PDA Engineering: 2975 Redhill Ave., Costa Mesa, Calif., 92626. (714) 540-8900

Source: PDA Engineering

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