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Technology Stocks : Spectrum Signal Processing (SSPI)
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To: Greg Paquette who wrote (137)8/9/1997 11:54:00 PM
From: ECAC Hockey   of 4400
 
SSPIF does not make or design DSP chips. That is TXN's and ADI's and other big semi company's jobs. SSPIF designs boards around these chips, writes application and development software for them, and develops enhancement ASIC chips to overcome board level performance bottlenecks. SSPIF's customers take these products of SSPIF and design them in to their systems, ie Siemens Medical took a SSPIF board and application software and put it into one of their MRI machines. TXN and SSPIF complement each other, there is no competition whatsoever. The better TI and the overall DSP industry does, the better SSPIF will do. This co. is very undervalued. The team of DSP engineers they have in place is unmatched and cannot easily be duplicated. DSP is an extremely difficult field to master as it requires disciplines in all aspects of Elelctrical Engineering/Math/Software and there is a great scarcity of talent out there. The team SSPIF has in place would take years for anyone else to develop. The big defense contractors all have in house DSP departments, but for the most part are incapable of developing anything that works right, it is simply that difficult a field. That is why they all come flocking to SSPIF and are willing to give SSPIF 70%+ gross margins.
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