Here?s exactly what?s written on my notes page. Questions are welcomed.
PMC-Sierra CC: Q1?00
CFO: John Sullivan
-P&L #s include acqs of Toucan and AANetcom.
-102.8 mil revs. 97.8 mil netoworking revs, up 27% QoQ, 106% YoY.
-Cisco and Lucent>10%.
-80% of sales to NAmer, Euro/Asia records also.
-BTB>1
-24.1% of revs=R&D, added 3.1mil organic, 2.5mil from acqs.
-SG&A down to 14.3%.
-7.9mil in costs related to acqs. 2.7mil in gains.
-42.7mil net income-OM=42% at 34% tax rate, up 199% YoY.
-223mil in cash, up 31mil QoQ.
-DSO=41<regular 45.
-Inventory turns=9>6 regular.
-Bob Bailey new COB.
-839 employees, up 179QoQ (100 recruited).
CEO: Bob Bailey
-Unusually robust Q, faster growth rate.
-486 DWs-inc newprods, inc in startups, solns emphasis. Strength in:
-SUNI Atlas ATM framer
-SPECTRA SONET framer
-TMUX M13 mux device
-COMET T1 LIU
-Alligator segmentation reassembly
-Vortex broadband access chipset
-TTI Switch fabric chipset.
-Surge in startups-200-1600 new sockets in them. Content in tier1s inc.
-In switches (optical), cross-connects, DSLAMs, metro, routers.
-New prods:
-Quad COMET framer-6 sockets won, 200 original.
-Alligator 32 channel ATM-15 DWs.
-TT1 320 Gbps fabric-Abrizio-16 sockets
-Acqs-AAN, EPD done, as are Toucan and Abrizio. Positive response from customers. More acqs expected.
-Q2 outlook-15% QoQ growth possible using just current backlog, assuming no new orders for the rest of the Q!
-Inc R&D, hirings.
-Never more confident, de facto standards, DW inc, best employees...
Q&A:
-Rev growth continues in older prods. Obsolescence is self-induced.
-All of the growth was PMC-no Toucan, AAN counted-next Q.
-Unprecedented startup activity-80/20 rule no longer applicable. 5 new ones each week approach PMC. PMC?s solns are helping startup compete.
-SONET OC-48 CMOS meet ITU perf specs. Going to .13um for OC-192.
-Majority of 179 new employees are technical professionals.
-T1/E1 revs>OC-3>OC-48. Win 80% of new sockets attacked.
-NT<10%, close though.
-rare when new prods have no immediate customers.
-New classes of competitors-distancing tremendously, R&D> revs of competitors. Buying in is difficult.
-Alot of PHY revs-new designs are total solns.
-No problem with wafer supply-14-16 week lead times. |
