Conference all with Alex Hui and CFO Patrick Brannan
* VERY optimistic into fy2001
*earnings up 183% from prev. year
*net income up 61% sequential quarterly
*completed secondary of 2.2 million shares
*was added to Russell 2000, effective July 1
domestic 57% of biz
int'l 43% (Asia 27%, Japan 7%, Europe 9%)
*inventory went down to 70 days
*productivity way up
*$531,000 per employee (up 25% from last q)
*140 million cash (that's 21% of our market cap, folks)
*10th anniversary this weekend
*very strong demand for products across all sectors
* fourth consec. q of double digit sequential earnings growth
*Cisco is only customer accounting for more than 10% of biz
* Europe will grow to 15% of biz within two years
* record backlog
* yet more record rev and profits expected for q1 fy2001 (at least 50%)
*servers, networking, and telecom lead the demand for PSEM products
* tons of design wins (too many and too esoteric for me to keep track of, especially in Hui's rather thick Chinese accent)
Very, very pleased with the entire biz
* Strong book to bill for new products, affirms strategy of focusing on telecom infrastructure and mobile systems
* margins WILL go up as higher value-added products make up an increasingly larger percent of revs
* can sustain similar growth in years ahead, both top and bottom lines
All questions in the Q&A started with hearty congrats on the outstanding q
My overall impression of Hui: Hyper informed and confident. Only down is his speaking style: Thickly accented with far too many "you know"s. He should think about getting someone else to join in to lead the cc's, IMO. Brannan, too, was confident and sure-footed. This one is a keeper. I see no reason why it won't grow into a much, much larger market cap over the next few years. |
