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Technology Stocks : ESST-the new beginning.

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To: view who wrote (2306)1/27/1999 6:26:00 PM
From: Synapsid  Read Replies (2) of 3493
 
I wonder what is causing the low gross margins?

Possibilities include PCI audio chips (decreasing ASP, Maestro-2 and Solo chip may not be the most cost-effective audio chips around, manufacturing-wise), and older VCD sales, as well as non-existent margin on most modem products. Also, it has been reported on this thread that ESS was seeing more demand than it could supply for both certain audio and video products, which could have caused expediting charges.

I'll listen to the cc.

As for the stock price, the short-term outlook is healthy although not earth-shattering, but they are increasing their credibility after four quarters of losses.
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