Jeff, Anyone who knows XICO has frustrations and harbors at least some grudge for what might have been. I was directly associated with them for 13 years and, on many occasions, felt like Charlie Brown when Lucy (Raphi) would pull the ball and laugh as I fell on my back. Of course, I also saw similar situations at virtually EVERY semi company. TXN would not have survived had it not been for patent royalty derived through law suits in the 80's and early 90's. There was a point in time in the late 80's when the cumulative P&L of the entire semi industry was a negative number. It is only recently that the industry, as a whole, has learned marketing and other basic business principles.
This is not intended to excuse XICO; they were more guilty than most. Until their current strategy of becoming a mixed signal house, they NEVER had a strategy that was capable of providing sustained growth and profits. Most of their failed strategies were the result of misreading industry trends, but some were directly attributable to them believing their own "advertising."
From here on out, it's a game of execution for XICO. Thus far, they have done well at leveraging their assets to develop products appropriate for the times. Field sales, the one consistent strength through all of these bad times, has done very well at gaining new design wins. XICO has returned from the brink of financial disaster and done well at reducing fixed costs by moving to a fabless model with reasonable elegance. However, they are still failing in several areas (Gray Tuesday was a huge reminder). Personally, I attribute 90% of this fault to Raphi and an anemic BoD.
Even though I know the events of the past much better than most, I prefer not to dwell on them or any other issues that make little difference. I am as aware of this animals nature and intend to proceed with great caution. However, I will not take the time or energy to focus solely on these issues of the past and ignore the reality of today.
I grow weary of those who choose to complain about their situation and don't expend the effort to make a change. I won't listen to someone who complains of an unfaithful spouse knowing they will catch them cheating again. You either move forward with a positive, all be it, cautious attitude or you leave and find new opportunities.
I know, as I feel you do, that even though Salomon dropped XICO coverage after being burned, some of their key investment advisors continued to follow XICO and again recommended the company to their clients starting in 1998. Those advisors have clients who cumulatively own over 10% of the stock and, may I add, sit on a tidy profit. I take this as a much more important vote of confidence than the endorsement of Mr. Joseph (Salomon's lead semi analyst) who I consider to be either totally clueless or ........... I think the analysts who more recently have covered XICO are infinitely smarter, but as I clearly stated, publicly cautious and, as you echoed, with good reason.
Well Jeff, I think you could add some flavor and knowledge to this thread or you could continue to grouse about the past. The choice is yours. Regards, pmcw |
