Xicor ? Message Board - Msg: 12262506

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Technology Stocks : Xicor ?

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To: steve olivier who wrote (2715)	12/12/1999 2:24:00 AM
From: jeffbas	Read Replies (1) of 2920

My comments on the Soundview numbers: messages.yahoo.com Based on my info the fab depreciation charges are about $1.9 M per quarter. That is 58% of the $3.3 M total per quarter, which is suggestive of perhaps a $17 M fab writedown charge. We then have to add severance and things like that, which still should not get you up to a $1.01 loss after an earnings credit. I expect any fab writedown to be preannounced shortly after yearend, unless they think they already have done that in the 10Q. As far as valuation relative to ATML goes, I do not assume that Xicor will not achieve the same level. The outside fabs have far more wafer start capacity than Milpitas. What if Xicor were to introduce products that were very well received - perhaps the $.25 DCP chip, or battery mgmt products, or whatever? What do you think would happen to the valuation relative to ATML if the market came to believe that the outside fabs significantly leveraged Xicor's small existing sales base. (We already know that the outside fabs will leverage Xicor's existing design capability, and that they are getting a lot of design wins.) I am very open-minded on this issue.

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