It was nice visiting. Think this one goes to the back burner for now. FWIW.
VIXL 10-Q (11/17/1999)
We sell our products to a limited number of original equipment manufacturers, or OEMs. Compaq Computer and Sun Microsystems represented 35.2% and 18.6% of revenue, respectively, for the three months ended October 3, 1999.
Sun Microsystems and Hewlett-Packard represented 61.1% and 16.6%, respectively for the three months ended September 27, 1998. Sun Microsystems and Compaq Computer represented 29.8% and 24.2% of revenue, respectively, for the nine months ended October 3, 1999 and Sun Microsystems represented 62.9% of revenue for the nine months ended September 27, 1998. No other individual customer represented more than 10.0% of our total revenue in those
periods.
During the period January through September 1999 we out sourced our product manufacturing to two contract manufacturers, K*TEC Electronics, a division of Kent Electronics, and Solectron Corporation. The planned transition for moving all production to K*TEC was successfully completed with the production at Solectron ending on September 17, 1999. All equipment and materials were moved from Solectron to K*TEC or our Bothell facility.
We purchase certain components directly from suppliers and resell them to our contract manufacturers at our cost and recognize no revenue from these transactions. We also out source the manufacturing of our ASICs to third-party
manufacturers that ship these components to K*TEC for assembly.
Component revenue consists of revenue generated from the sale of our GBIC and GLM transceivers. Component revenue in the three months ended October 3,1999 was $2,301, a decrease of $3,092 compared with $5,393 in the three months
ended September 27, 1998. Performance issues with our CD based transceiver products sold primarily in 1997 were identified in late 1998 and early 1999 and resulted in decreased purchases of our transceiver products in the three months ended October 3, 1999. We anticipate that our component revenue will continue to decrease as a result of our decision to focus our resources on our SAN systems as well as a result of our customers' perceptions of our transceiver performance
problems.
We have incurred significant losses since inception and expect to incur losses in the future. As of October 3, 1999, we had an accumulated deficit of $72.6 million.
We cannot be certain that we ever will realize sufficient revenue to achieve profitability. We expect to incur significant product development, sales and marketing and administrative expenses, and we will need to generate significant revenue to achieve and maintain profitability. Even if we do achieve profitability, we may not be able to sustain or increase profitability.
Also, we typically generate a large percentage of our quarterly revenue in the last month of the quarter.
The markets for SAN interconnect products are highly competitive. Our current competitors include a number of domestic and international companies, many of which have substantially greater financial, technical, marketing and distribution resources than we have. We expect that more companies, including our customers, may enter the market for SAN interconnect products. We may not be able to
compete successfully against either current or future competitors. Increased competition could result in significant price erosion, reduced revenue, lower margins
or loss of market share, any of which would have a material adverse effect on our business, results of operations and financial condition.
K*TEC is not obligated to supply products for us, except as may be provided in a particular purchase order that K*TEC has accepted. We place purchase orders with K*TEC based on periodic forecasts. While most of the materials used in our
products are standard products, some are proprietary and/or sole-source and require extended lead times.
From Hoover's:
Vixel sells its products through re sellers and directly to such electronics manufacturers as Sun Microsystems (54% of sales), Hewlett-Packard (12%), Compaq, and IBM. It out sources most of its manufacturing to Kent Electronics' K*TEC Electronics unit.
Press Releases:
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com;
The news paints a brite future. We shall see what Kevin Landis does in fund.
Keith |
