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Technology Stocks : Vitesse Semiconductor
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To: carpe diem who wrote (557)4/14/1997 8:25:00 AM
From: Mark K.   of 4710
 
More on the Colorado fab:

Carpe_diem -

Due to two secondary offerings VTSS undertook last year, they have all the funding they need to put up the new facility. In fact, they should have a large cash surplus even after the capital spending is completed on the Colorado fab, which is scheduled to begin production next summer. At that time, the initial start-up should be generating 150 wafer starts per week (as was mentioned, this will be six inch wafers rather than the four inch wafers produced in Camarillo).

The existing facility will max out at 750 wafer starts per week (it averaged 500 per week last quarter). When Camarillo maxes out, it will be generating:

750 wafer starts per week X $5000 per wafer X .8 yield X 13 weeks in the quarter = $39 million per quarter, or an annual run rate of $156 million. That's without the second facility, and without yield improvements. Analysts estimates for revenue in 1998 are around $132 million.

Do they have enough business to grow that fast? The book-to-bill would seem to indicate they do.

Mark K.
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