10.19.2001
Delta recalls defective adapters

• Delta will recall all 95k adapters shipped to Cisco after an overheating defect was found. Adapters are produced in the Dongguan factory and are used for Cisco’s ADSL modem. Delta spokesman indicated the case is unique and unlikely to occur among the company’s other products. Although only one unit was reported to be defective, Delta decided to call back all of the shipped units. Firm has not yet tallied potential losses, but expects figure to be immaterial. As a global leader in power supplies with a diversified customer base, we believe Delta can endure loss. Recent downward adjustment in stock price suggests good timing to Accumulate on weakness.