17:39 SGTL SigmaTel confernce call summary (13.65 -0.82) -Update-
On conference call, SGTL says equipment issues at test and assembly partner affected qtr. Co is currently at 100% capacity, and expects to achieve buffer stock by mid-November. Expects to have another assembly and test provider in place soon. Says the production mix became more complex, and SGTL began building to customer orders. Says demand was strong in Sept, but lack of product availability affected revs. Experienced tightness in wafer supply. Says inventories were worked down to fulfill demand. Gross margin was 51% in Q4, and drop in margin from 55% represents a shift in products to lower end. SGTL will be filing an S-1 later this week related only to the offering of restricted shares affiliated with the Protocom acquisition. During Q&A, when asked to clarify Q4 guidance, co says it is seeing approx $5-6 mln in revs from acquisitions, with about 5-6 mln in spillover from Q3. When asked if that suggests about a flat core business, co responds by saying that is their current guidance, and they are still trying to deal with production issues. Says they are approx 1 mln parts short of what is in demand for Oct, hoping to be caught up by mid-November. Co's concern is with hanging on to the customer through the delays. When asked about selling stock at $20, CEO says 10b5-1 program was put in place earlier this year, and he set the low end at $20, thinking the stock would never get there. Says any prudent financial planner advocates diversification, and says he still has 900K in options. Says the 15K he sold should not be considered as changing his opinion or stake in the co, and that if he was dumping the stock, he would hope to be selling a "hell of a lot more than 15K shares." Simply says minimum price in 10b5-1 program is $20. Q&A is still going on. |
