Steve & Everyone, My Summary of the Call:
NSM Conference Call
Next Quarter Conference Call: September 10th
ú Bookings declined 20% from last year
ú Bookings declined 22% from last quarter
ú Capacity at 56% with full capacity 85%
ú Tax Rate at 25% and continue next quarter
ú Capital expenditures dropped to 108 Million in 4Q98
Brian Halla
ú Update of PC Market (Midrange reducing inventories)
ú Expect 70% of Market below $1000
ú National to offer Partnerships
ú Celeron Product currently a miss
ú M2 300MHz achieved 67% Yield on first lot out of Portland
ú MediaGX Laptop has 21% Market Share in Laptop Market
ú LAN Market (Lost key Socket) acquired ComCor for DSP Technology
ú Wireless Inventory has been consumed
ú Aggressive Move to 0.25 Micron Process for all processors
ú New Fab in Portland ready to service market
Don McCloud
ú Order visibility is poor
ú Analog Bookings up 20% from very poor quarter
ú Cyrix Shipments up 10% from prior quarter
ú Backlog is not in place as it should be
ú August Revenue 500 Million +/- 10 Million
ú Fab Capacity at 56% (end at 50%)
ú Spending reductions in place
ú Operating Loss at $0.42 per share for next quarter
(maybe only $0.37) 1Q99
ú Cyrix Products will give us an Opportunity to increase sales
ú Pulled-in Closure 0.65 Micron Fab to July
ú November Quarter Loss 30 Million (2Q99)
ú Capital Expenditure at 325M to 375M was 600M
(8-inch Fab in Maine capacity cutback)
ú R&D at Spending at 400M
Question and Answer Session information
ú Cyrix leading Integration effort, Intel must follow
ú National has worked on acquiring all technology over last two years
ú MediaGX Production Level and M2 Production Level
ú Aggressive Pricing with Generic Socket 7
ú Intel can support market to $899
ú MediaGX and M2 capacity in place in Maine and starting ramping first
week in July
ú Capital Spending for 0.18 in place and continuing
ú 10,000 Wafers Starts, can doupble current capacity of wafer starts
ú 10% to 20% market share possible
ú Expect new markets with information appliances
ú Taped-out MXi be back in couple of weeks
ú Sampling MXi in 4Q99
ú Plans for Slot 1 only if a partner wants it (Taiwan)
ú Taiwan did not believe AMD, IBM, NSM and IDT could not ramp-up,
90% of Market is going to Slot 1 according to Taiwan
ú Slot 1 offering Goal in next couple of quarters,
(CPU needs to be redesigned for Slot 1 Bus)
ú Breakeven Revenue NSM refused to answer question twice!
ú NSM expecting to reduce cost by half
(Cost was $56 to $60 in the Cyrix days)
ú 573M in Cash
ú Analog 40%, Communication 34%, PC Products 26%
ú Costs with 6 Layer Metal lowest in the Industry for M2 and MediaGXm
greatly increase speeds
ú Stable weekly order rates now, few cancellations and little
re-planning, order rate is still too low.
Bob |
