Jeff, generally they would have to not be using the fab 12 months after the w/o. So, in order to take the w/o in this Q3, they would have to be confident that they could transfer all production to Yamaha by 9/30/00. However, since it sounds like a sale of the fab is a possibility, this whole 12 month issue could be moot. However, in order to sell the fab anytime soon, it seems to me that the sale agreement would have to provide for the buyer to continue to produce chips for xico until the full transition to Yamaha is completed and act as a second source until one of the other foundries could be qualified. I don't know if this is possible. In any event, the w/o or sale in Q3 is not that important in the long run, it would just be nice to get it behind us in Q3 and be able to show a good Q4 going into 2000.
As for my sales est for Q3, based on all the other cc's I listened to, I have this feeling that the industry will see less of a summer slowdown than has historically been the case. Therefore, I think the turns business will be good and 5% should be no problem. |
