not925 -
Did anyone listen to the conference call today at 11:30am EST (10/18/00)? Why did the stock tank at exactly 1pm EST today? Did they say something negative on the conference call, or was it because of the entire semi space?
My understanding is that all analysts only had positive things to say about the quarter and the conference call.
The replay was only on for 4 hours this afternoon and I missed the window to listen to the call.
Did anyone listen to the conf. call? If so, could you kindly summarize for us (positive and negative key points)?
Guidance from previous call of 7-9% sequential revenue growth was exceeded by unseasonably strong 10% Q1 gain. Guidance for next Q is increased to 8-10% sequential revenue growth. FY2001 ending 6/30/2001 should be at least 50% revenue growth over FY2000, following 39% y/y in FY2000 over FY1999.
Lead times increased from about 10 weeks to 12 weeks with firm commitment requirements for proprietary products (~90% of revenues), and were pushed out even further for multiple-sourced (but still high margined)products to discourage their order placement.
Fab capacity being steadily ramped to meet continuing strong broadbased demand. Book to bill significantly above one, and little if any turns business needed to meet revenue forecasts. First wafers were successfully processed through the new Hillview fab (Milpitas, CA)in the last week and production is scheduled to produce revenue in the quarter ending March, 2001.
Gross margin up to 76.1% from 75.4%. Operating margin up 1.8% to 56.6%. Net after tax margin up to 44% from 42%. Tax rate down to a sustainable 30% from 31%. ASPs up 1%. All profitability measures are forecast to be maintained going forward, subject to normal small variations. Days Sales Outstanding reduced to 29 days from 30 and Inventory Turns constant at 9.5X annual rate.
Cash and ST investments up $98.4M to $1.274B.
Communications, led by networking segment, now up to 44% of business. Computer 29%, Industrial 22%, Rest 5% (presumably automotive, space, military). US 50%, Europe 17%, Japan 11%, Rest of World, mostly Asia, 22%.
There were no negatives and tight control of inventories is being practiced to prevent possible future problems.
Despite continuing authorization, no stock was repurchased in the quarter, and to my knowledge, none has been repurchased since December 1998.
Due to SEC Regulation FD (Fair/[Selective] Disclosure) becoming effective on Monday, 10/23/2000, the quarterly earnings press release and the associated open telephone conference call are now the SOLE forum for estimates of and questions about future financial performance and models.
Regards, Don |
