Xicor's 10k was filed yesterday. Some random thoughts:
1) "Yamaha is Xicor's FIRST foundry". Implies there will be another foundry arrangement.
2) Towards the second half of 1999, should see significant wafer starts at Yamaha.
3) Wafer costs from Yamaha will be lower.
4) Expect payroll saving of approximately $13mm in 2000. Will be partially offset by outsourcing costs and increased selling and marketing efforts.
5) Level sales in 1999 compared to 1998 will equal better bottom line.
6) Average price of exercisable options = $2.47. Therefore, anyone who buys at these levels will not be diluted by the exercise of options by employees.
7) overall, nice 10k, horrible trend..
Going forward, xicor looks like a decent spec at 1-1 1/2. My read is that as long as the semi industry doesn't go to hell in a hand basket, xicor could be very profitable in 2000. If they obtain a reasonable level of profitability ($0.20 - $0.40), in 2000, then the stock could easily be at the $5 level. I am beginning to think I want to get on this train one more time. Of course, the risk is we go into a downturn, and xicor runs out of cash. I don't think this is likely. If this management has shown one thing to me over the years, it is that they know how to survive.
Good luck.
|
