Why I bought more POWI today:
Revenues for the past 13 quarters
1997 1998 1999 2000
6.8 13.9 20.8 27.0
9.9 14.6 23.0
12.9 19.9 30.1
15.2 19.7 29.7
Q1 has always been lowest sales of the year
Q4-Q1 transition has always been anemic
nice trend lines if you look at each quarter's growth
year over year, i.e., the 2nd quarter for all years
3Q this year with Motorola thorn out of their side,
and with historical trends, and with the new
upgrade to POWI's product line, should be quite good.
I do wish, though, more had been released on terms
of the settlement. Motorola did not even bother to
issue a press release. I presume that Motorola commits
to accept POWI's patents, and to stop alleging POWI
interferes with their patents. I'd like to know for sure
on that. Also, what is MOT's commitment to buy in
the future? For now I am working on the presumption that
the management made a deal good for POWI's long term
business profitability. In other words, I am working on
the presumption that the press release, which reads almost
like capitulation, is not a fair representation of the
goods POWI got in the deal. |
