VTSS will report Q3 result on Thursday, a week earlier than the
originally planned date. Per analyst, this shows that VTSS has some
good results to report, and might have been fed up by the recent stock
decline. Personally, I consider this as a very good sign that
company's business is well on track. I hope VTSS can use the
opportunity to make a strong statement, even declare buying back some
of its shares. Let's hope the best! The followings are the analysts'
comments. Enjoy!
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01:53pm EDT 12-Oct-98 Montgomery Securities (J. Joseph 415 627-2925) ATML VLSI
Technology: The Week Ahead--October 9, 1998 (Part 5 of 9)
NATIONSBANC MONTGOMERY***NATIONSBANC MONTGOMERY***NATIONSBANC MONTGOMERY
TECHNOLOGY: THE WEEK AHEAD
(PART 5 OF 9)
October 9, 1998 TECHNOLOGY
Thomas A. Thornhill III, CFA (415) 627-2027 First Call
DJIA: 7732
S&P 500: 959
NMSGI: 83
VLSI TECHNOLOGY INC.** (VLSI) $6-3/4 WESTMONT
(FY - 12/31) HOLD FY97: $1.31 FY98E: $0.17 FY99E: $0.13
o VLSI will report 3Q98 earnings on Wednesday, October 14 after market close
followed by a conference call at 2:15 PM (PST).
o Anticipate EPS of $0.00 versus $0.42 a year ago.
o Anticipate revenues of $126.8 million versus $181.2 million a year ago.
o We expect VLSI to report break-even earnings for the September quarter, in-
line with our revised estimate and $0.01 ahead of the street consensus of a
$0.01 loss. The company pre-announced lower than expected results on
September 2nd targeting revenues to be down 5% to 10% sequentially. Sales
into the wireless market (20% to 30% of total sales) were expected to drive
sequential growth in the quarter but the expected magnitude of improvement
did not materialize. Wireless shipments are still expected to increase over
June quarter levels. There are likely several factors negatively affecting
demand for the company's wireless products including market share loss by
the company's largest customer, Ericsson, and slower growth of the handset
markets in Asia and South America. We do not expect the outlook for the
December quarter to improve and we also believe the company is experiencing
increased competition for sockets in Ericsson's newer handset models which
dampens the long-term outlook.
VITESSE SEMICONDUCTOR INC.* (VTSS) $19-1/8 WESTMONT
(FY - 9/30) BUY FY98E: $0.66 FY99E: $0.82 FY00E: $1.10
o VTSS will report 4Q98 earnings on Thursday, October 15 after market close
followed by a conference call at 1:30 PM (PST).
o Anticipate EPS of $0.20 versus $0.13 a year ago.
o Anticipate revenues of $53.0 million versus $30.8 million a year ago.
o We expect Vitesse to post a typical good quarter, with good upside to
Street expectations and report a book-to-bill ratio north of 1.15. Total
backlog should be well north of $90 million, so the company's visibility
remains among the best in the industry. |
