Semtech (Nasdaq:SMTC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semtech (Nasdaq:SMTC)

SMTC 75.63

-0.4%

Dec 24 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jbe who wrote (1135)	8/23/2000 3:12:17 PM
From: William N. Kammer	Read Replies (1) of 1225

I saw the same $400,000,000 liability in the financials and asked myself where it came from. Then I remembered it resulted from convertible debentures issued last February. Here is how the company described the event: " On February 14, 2000, the Company completed a private offering of $400.0 million principal amount of convertible subordinated debentures that pay an interest rate of 4 1/2 percent and are convertible into common stock at a conversion price of $84.46 per share. The notes are due in seven years and callable by the Company after three years. The Company intends to use the net proceeds of the offering for general corporate purposes, including working capital, expansion of sales, marketing and customer service capabilities, and product development. In addition, the Company may use a portion of the net proceeds to acquire or invest in complementary businesses, technologies, services or products." Whether or not that was financially wise remains to be seen. Most of the proceeds still seems to be sitting around in cash and short-term investments. Personally I believe that SMTC management is on the right track. Bill

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next