After a super run in its shares from October onwards - they tripled in value - Densitron has disappointed fans with a profit warning, referring to the cancellation of a large order for single board computers from Japan, plus a softening in demand for display products. As a result, Peter Joseph of house broker KBC Peel Hunt has slashed his full-year pre-tax profit forecast from £1.3m to £600,000 on £33.2m of sales, with a small profit expected in the first half (for which results should be released reasonably soon). Joseph comments that 'there is plenty of evidence of a massive reorganisation underway [at] the company'. This is good news, since one of Densitron's main problems has been its wide range of operations and activities, ranging from the manufacture of the Cassius personal computer, through LCD displays to internet hosting and domain management. The latter business has been given away and Cassius is no longer in existence, leaving Densitron free to concentrate on its core competencies in computer technology and LCDs. But the outlook is still coloured by the fact that the company only has minority interests in its two successful Taiwanese LCD businesses (45% stake and a 29% stake), meaning that the holding company will in fact make a loss (estimated at 1.2p per share) this year. 3.9p per share of earnings is forecast for 2004, but this cannot be relied on at present. Avoid for now.