CRUS, good buy? Message Board

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Technology Stocks : CRUS, good buy?

CRUS 118.06

-4.0%

11:12 AM EST

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To: ptrader who wrote (7573)	3/2/2000 12:31:00 AM
From: Grand Poobah	of 8193

Good guess but the real number is 284,615 chips/day. So you're telling me that CRUS's ASP is >$8 per chip? Based on last quarter's run rate of $150m and your figure of 284k chips/day, I get an ASP of $8.15. That seems rather high to me, especially considering that a large number of those chips are sub-$2 DAC's and ADC's, sub-$5 audio codecs, and sub-$5 read channels. I would guess that their volume of sub-$5 chips would be at least three to five times (ballpark) their volume of over-$5 chips. The volume of over-$15 chips would be smaller yet. That's why I picked an ASP of $3. An ASP anywhere $2-5 would make sense to me, but $8 seems awfully high given the competitive realities of most of the existing CRUS markets. I agree with you about the beauty of mass production, though. And with the constant need to move toward more-integrated (and also higher functionality) designs. Unfortunately, once you have competition, the ASP's will fall on any chip, eventually also on the new designs. It is a constant battle. Regards, G.P.

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