Well, it was a very interesting CC, I thought. I just finished reading it here:
seekingalpha.com
Lots of good questions. Sanjay dodged some of them with non-answers, but I suppose that is to be expected. The quarter wasn't bad, even the guidance wasn't really bad exactly, but it was ho-hum, and the fact that they are delaying the Fab 5 buildout while Samsung just announced that they are going to build a new fab that will begin outputting sometime in late 2013 was a downer. Of course, Samsung's fabs have been half as big as Sanshiba's fabs, so effectively Phase 2 of Sanshiba is like a second fab for Samsung. Plus they said that cost reductions will be less with smaller die sizes, which we knew (or should have known--like, duh, the move from, say 32 to 24 is a lot bigger than 24 to 19) and they still don't have a SSD with x3, not even a PC-client SSD, that to me was a bummer.
I am not going to put excerpts from the CC here, because there was a lot to chew on there. People may as well read it all. The stock will clearly get hit tomorrow, I don't know by how much. I am not going to be buying the hit, I will wait at least until their Analyst Day in mid Feb. They seemed dispirited to me, and the stock price is likely to reflect that over at least the next few weeks. |
