VTSS Business As Usual!
That's the impression from the earning report.
VTSS always keeps growing at rate 70+%, maintains gross margin 65+%, and always beats the estimated number by a penny, not more, not less, which makes me doubt if the CFO is manipulating the number to make next quarter easier -:)
However, I do find some numbers unusual from the conference call (800-475-6701, code 424413):
1. The book-to-bill ration for the communication products is 1.21 (3/4 of VTSS revenue), and ATE situation is much better than before and improving.
2. Both fabs are humming smoothly and yield reaches 90+% that is high even for making silicon chips. This confirms VTSS's claim that it uses uniquely simple and low-cost silicon-like procedures to pump out Gaas chips.
3. V-Tek purchase is a great success and on track to make siginificant contribution to revenue.
VTSS is one of the few companies that dominates, like Broadcom (BRCM, PE=260) for cable modem chips, QLogic (QLGC, PE=140) for fibre channel, and PMCS for ATM/PHY chips. The only difference is that VTSS is much much cheaper. (no dare of comparing to "Internet stocks")
I just feel sorry for those who sold the stock yesterday at 47, and would feel terrified if I had a short position.
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