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Betting On Semiconductors With A Safety Net

(Editor's Note: The company's OTC listing trades with limited liquidity. The German listing as PFV offers better trading liquidity.)

On 3/20, Pfeiffer Vacuum (OTC:OTC:PFFVF) released its annual report. The company develops, produces and distributes vacuum solutions for a great variety of end markets: semiconductor, coating, R&D, analytics and industrial applications.

(click to enlarge)A closer look at the segmented data and cash flow statement disclosed in the 2013 annual report reveals some interesting details about the company and its future prospects.

Revenue and margin analysis

Pfeiffer certainly had a bad 2013. Sales were down 11.4% and net income was down 24%. However, margin development provided a different picture: In spite of heavily reduced sales, operating margins shrank...

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