Vitesse Semiconductor Message Board

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Technology Stocks : Vitesse Semiconductor

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To: JK who wrote (4125)	6/20/2002 11:57:39 PM
From: The Ox	Read Replies (1) of 4710

Burn rate is very high. They continue to spend a small fortune on R+D but either the sector will turn or they will have to revamp their business model going forward. They have enough cash to keep alive for a while but their positive net asset value will disappear within the next 5 quarters if they continue to spend like the last quarter. There is still way too much goodwill on the balance sheet and when this is removed, net asset value per share is very weak. The way I look at it, they are between a rock and a hard place. Something has to give. So far, management has failed the common shareholder and it's possible that they will be a casualty of the "nuclear winter" which has struck the networking/telecom sector. What a pity they didn't raise more cash when they had the chance.

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