Hello Martin and all
The booming networking market is accelerating with increasing demand.
Seeq has a broader line of Ethernet products than their competitors with
the best mixed signal design people in the sv.
Foundries are as follows: AMI, Ricoh, Samsung, TSM. All of which
are doing good with orders. Seeq is looking at a 40% Gross margin and
focusing targets of 50% next year.
At the close of May's quarter Seeq had 4.6 million in cash, with an
additional 3.6 in an escrow account which will be released if Feb. 1999
Seeq has a credit line of 7 million and is looking at no DEBT.
Management owns approx. 4%, SB 11-13%, Atmel 6%-8%. Total institutional is
approx. 25%.
Regarding the new TX chip: Many customers are sampling this chip in their
products such as Cannon ( Fujutsu, Compaq, and HP, and many other companies. UNH University
of New Hampshire (Independent test site)have tested this chip with very
high marks.
Seeq is just waiting for the large orders to come in, they have received
numerous small orders in the thousands at this time. This tx chip has
tested better than any of their competition.
Another point regarding Seeq is that they try to make there products
compatible with each other.
Part of the history of Seeq is about 3 or 4 years ago they decided to
be a Data Communications Company and sold off their semiconductor
business to others including Atmel. It took all of that time to restr-
ucture and develop new products for the net working market which has
a great rate of growth now. Their new Gigabyte chip will be great business for them next year
In the last 3 to 4 months they have hired some very well qualified
people in sales that understand the TX market, and have put a well
qualified new board of director from Cisco that has a reliable name
in the networking industry.
In November they will be at an analyst meeting in Los Angeles, and
they will be appearing as usual at the American Electronics conference
this year. (This is a technology conference, and Companies and analysts
come from all over the US to attend.
Regarding the Smith Barneys Brokers not being able to buy Seeq last
week.
Since the fund that they own has about 13% of Seeq, They did not want
their brokers raising their position to 15%. The reason being this
would trigger the poison pill, which would increase the number of
shares outstanding. The poison pill would kick in at 15% and recently
has been raised to 20%. This is sort of a standard for some silicon
valley companies to avoid takeovers. Smith Barney brokers can now buy
Seeq.
Getting back to the UNH testing facility. This is an independent testing
facility that gives your chip an unbiased test for the industry.
Good luck |
