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Technology Stocks : PMC-Sierra (PMCS)
PMCS 11.650.0%Jan 25 4:00 PM EST

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To: Rustam Tahir who wrote (3566)7/12/2000 1:19:49 PM
From: hospitalman  Read Replies (1) of 3818
 
Thanks for the Prudential info. If I recall from pmcs's last quarterly financials they are running gross margins of about 80%, so high they're hard to believe. So now they take this new business and run it up to $1B in five years. Let's assume they do $200m, $400m, $600m, $800m, and then $1B. That's $3B in new revenue over the next 5 years with an 80% gross margin yielding $2.4B gross profit on their non-cash investment of $2.3B I'll take that deal.
Ken
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