Clint,
AMCC conference call summary. Limited amount of time so no transcript.
Rev 74.2 mil, up 134% Y-Y, 30% Q-Q
Income 29.9 mil 217% Y-Y, 35% Q-Q
BTB 1.35
Backlog $172 mil, expect to ship 72.4 mil in next 3 months, 100 mil in next 6 months
Communications segment grew 177%, Y-Y, 30% Q-Q, was 83 % of revenue versus 70% year ago
Non-communications segment growth same as last year
Gross margins 74 percent up from 70 percent due to communications margins
R&D expenses 19 percent of sales up from 18 percent
SG&A dwon to 14.1 percent from 15.3 percent last Q
Operating margines 40.4 percent versus 38.9 last Q
Tax Rate 34 percent, same for rest of year
Cash 974 mil, up 20 mil
Turns 7.0 versus 5.6 last Q
DSO's 46 versus 40 last Q
Non NT rev up 50 percetn Q-Q, 180 percent Y-Y
OC48-OC96 wins with ALA, CIEN, CSCO, Hitachi, SCMR, JNPR, TLAB
13 customers exceeded 1 mil
OC192 grew from 300,000 to 5.3 mil dollars Q-Q
Framers grew from 3.3 mil to 8.8 mil
NT 37 percent of revenues Q, revenues up 10 percent Q-Q for NT business
Just starting to ramp on many new products
Most of margin increase is due to external outsourcing of production
BTB Communications products .............1.4
BTB OC192 ................................................2.5
BTB Framers .............................................2.0
Record design wins,
value of wins are view from life time value point of view, assumes design times of 12 to 18 months, but 5 to 8 year product life cycle
1999 wins added 600 mil in future value
200 wins will add 1 billion dollars of value
in June alone we added 800 mil in future value
LU and NT design wins: 58 in LU, 51 in NT, have not seen the big ramp in these products yet
Wins in CSCO, TLAB and SCMR too.
ASP's rising and expected to climb due to density and speed demands.
In the 13 key suppliers of OC192 sub-systems, AMCC has wins in 10 of the companies and expects to win the last 3.
OutLook:
Expect rev to grow in 20 percent range, demand high near term, execution will be the issue not demand
Expect expanded bookings.
Expect increased grosss margins (WOW!)
Expect gross margin of 75 percent going forward.
R&D expenses will be up due to acquistions and hirings
SGA 14 percent going forward
75 percent of internal Fab being utilized
Have secures SiGe fab capacity from IBM, and garanteed CMOS capcity, delivery times not gauranteed though.
DSO at 46 due to 30 percent of rev being shipped late in the Q, DSO guidance for 45 percent
SiGe rev 6.7 mil, 9 to 10 percent of rev, CMOS rest of rev
See tightening of foundary capacity in 2H of year, not like 95 capacity crunch though, will not be terrible, scheduling is the risk, demand not a problem
No new 10 percent customers, NT and Insight distributor only 10 percent customers. 19 percent of rev due to domestic distributors
Rev by segment
OC192 - 5.3 mil
OC48 33.9 mil, mostly non NT demand, IC48 should continue to ramp going forward
OC12 14.8 mil
Cycle time of SiGe design is several months, expected not to limit rev's, not a near term issue
OC192 customers? many, not 2 but not 30, could ship more if they had it
Lead times? no change. problems is with customers not scheduling requirement properly not an AMCC issue
Booking numbers: This Q Last Q
OC192 13 mil 2 mil
Framers 14 mil 10 mil
Yukon product? Excellent response so far, no product rev's
ASP's up across the board for OC48 and OC192.
Shipped 100,00o units of gigabit ethernet ports
New design should have higher ASP's
OC48 ASPs will be down in 3 years. |
