Hi pp - component shortage is quite prevalent. Even the mighty CSCO mentioned that in this latest CC [CSCO doesn't produce much of its own products, so it is really the outsourcers' problem, but one would think CSCO would get preferential treatment
That said, shortage is a two edged sword. OOH, a shortage means the yield is not up to speed; OTOH, pricing is more flexible.
But back to VARL, according to the last 2 CCs, while there is good outlook [offhand, don't ve the backlog or the BTB #s,] production constraint is yet to be apparent, as the top line has demonstrated. It is not even the net margin, even though the bottom line is staled [hope just a short term thing.] The root cause is share dilution. Therefore, it is a financial issue instead of an operational issue
best, Bosco |
