W) STEC – quick and loose
Rated a watch
Reason for DD
request
Business
Simple Technology, Inc. is an independent provider of standard and custom memory solutions, with products based on dynamic random access memory (DRAM), static random access memory (SRAM), and Flash memory technologies. For the six months ended 6/30/00, net revenues rose 59% to $132.6 million. Proforma net income totaled $7 million, up from $1 million. Results reflect increased average sales prices and unit volume and higher margins due to changes in product mix.
We design, manufacture and market a comprehensive line of over 2,500 memory and storage products, as well as connectivity products that connect memory cards and hard drive upgrade kits to PCs.
In the first quarter 2000, our principal direct OEM Division customers included Alcatel, Motorola, Silicon Graphics, Unisys and Xerox. In 1999, our principal direct OEM Division customers included Dell Products, Mitsubishi, Motorola, Unisys and Xerox. In the first quarter 2000, our principal Aftermarket Division customers included CDW Computer Centers, Costco Wholesale, Ingram Micro, PC Connection and Synnex Information Technologies. In 1999, our principal Aftermarket Division customers included Avnet Computer, CDW Computer Centers, Costco Wholesale, Ingram Micro and Micro Warehouse. Other than CDW Computer Centers, none of our customers accounted for a material amount of our revenues in the first quarter 2000 or 1999.
Competitors
Other semi companies.
News
SANTA ANA, Calif., Oct. 4 /PRNewswire/ via NewsEdge Corporation -
Simple Technology (Nasdaq: STEC) today announced its entrance into the embedded mass data storage market with the introduction of its Solid-State Flash Disk Module(TM) products. "Our entry into the embedded storage market will allow us to benefit from a growing digital electronics market with a product equivalent to a hard disk drive," said Mark Moshayedi, COO, Simple Technology. "This family of products is becoming a complementary choice for several growing areas of the market, such as telecommunications, networking, and Internet appliance solutions," Mark added.
Analysts and Other
29-Sep-00 11:04 ET
Simple Tech (STEC) 11 1/32 +1/32: -- Update -- So many deals coming to market today that it is difficult to gauge which will open next. STEC shares have just opened for trading at $11 1/16. Company is a designer of memory products (DRAM, SRAM and flash memory) for communication apps.
29-Sep-00 08:03 ET
Simple Tech (STEC) prices 6.4 mln shares at $11 (Lehman leading);
Numbers
Revs $39.5M to $41.9M to $41.3M to $53.0 to $56.3 to $57.6 to 70.9M Jun00
Net income $0.242M to $ 1.2 to to $1.4 to $ 7.3 to $ 4.1M to $5.1M to $7.0M Jun 00
52-Week Low on 4-Oct-2000 $7.094
Recent Price $7.563
52-Week High on 29-Sep-2000 $11.531
Debt/Equity (mrq) 1.41
Total Cash (mrq) $37.0K
Market Capitalization $279.6M
Shares Outstanding 37.0M
Float 6.40M
Price/Book (mrq) 11.96
Price/Earnings (ttm) 18.77
Price/Sales (ttm) 1.04
Internet Posts of Note
To my knowledge...
...these are the only publicly traded pure-plays in flash memory cards.
LEXR (Lexar Media)
STEC (Simple Technology)
CENL (Centennial)
SNDK (SanDisk Corporation)
10/7/00 on SI
STEC--read this: a little DD. This company sells DRAM and SRAM chips. They made 192M with 57% year growth and net income of 12.5M. Very good by itself..TODAY they just announced entry into the embedded MASS STORAGE device Market. This market includes set-up boxes, network computers, PDAs,cellular telephones, MP3 Players, digital cameras, thin client systems, and other digital handheld devices, etc. Very much the business SNDK is in.
Comparisons:
SNDK Price 70/shr, Float 33.5M, approx. revs. 500M/yr, MCAP 4.55B
STEC Price 8/shr, Float 6.36M, approx. revs. 192M/yr, MCAP 352M
10/4/00 on SI
Simple Technology, whose memory products are found in portable digital devices such as digital cameras and MP3 audio players, filed today to raise $57.5 million in an initial public offering.
The Santa Ana, Calif., company, whose customers include Motorola, Unisys and Xerox, plans to use the net proceeds for debt repayment under a line of credit and repayment of undistributed earnings notes held by shareholders.
3/16/00
Insiders
Chart
Uneven movement with buying blocks and selling blocks.
Links
Summary
Customers include Xerox, Unisys, and Motrola. Yuk. Heavy dependence on computer companies is another negative. The hype on entering the flash memory market is just that. SSTI has the greater rev/eps jumps so if you want a flash memory play, that is the stock. It has proven products that sell. This has to prove it can sell the product. Sony’s flash stick not finding the market they had hoped. INTC and AMD entering space also.
On the positive side, the company has rev/eps momentum along with some other semis. The problem is that is the sector is getting hit on slowdown fears. This quarters conference call is a must listen before investing to determine position in the sector for future growth so a WATCH.
Jack |
