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Technology Stocks : SILICON STORAGE SSTI Flash Mem
SSTI 6.310+1.1%3:59 PM EST

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To: docpaul who wrote (962)9/30/2000 8:21:08 PM
From: Sam  Read Replies (1) of 1881
 
Well, I don't know if this is the reason for this offering, but here is a paragraph from "Risk Factors" in the convertible offering:

IF WE ARE UNABLE TO INCREASE OUR MANUFACTURING CAPACITY, OUR REVENUES MAY
DECLINE.

In order to grow, we need to increase our present manufacturing capacity.
Events that we have not foreseen could arise which would further limit our
capacity. We are continually engaged in attempting to secure additional
manufacturing capacity to support our long-term growth. While we have made
arrangements with manufacturers to provide us with more than twice the capacity
in 2001 as compared to 2000, we still anticipate being unable to satisfy all of
our indicated customer demand, at least in the first half of 2001. In the longer
term we may determine that it is necessary to invest substantial capital in
order to secure appropriate production capacity commitments.
If we cannot secure
additional manufacturing capacity on acceptable terms, our ability to grow will
be impaired and our operating results will be harmed.
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