CRUS, good buy? Message Board

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Technology Stocks : CRUS, good buy?

CRUS 130.18

+0.5%

1:11 PM EST

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To: Debt Free who wrote (6947)	5/4/1999 2:30:00 PM
From: Terrapin	Read Replies (1) of 8193

I don't know the timeline but the company has given the impression that the deals are imminent for close to nine months. IMHO they could have managed the expectation of the deals a little better. Please understand that disposing of the fabs is the right thing to do - I am merely saying that they should have stated that the deals would be completed in the coming year instead of saying the coming quarter. To understand what the deals will mean to CRUS you must understand what a colossal blunder they were in the first place. Mr. Hackworth was attempting to take Cirrus from being a fabless design company to an Intel-type chip maker. He paid out millions per quarter to get into the fab deals and then could not fill them with chips and so had to pay additional millions for underuse of the facilities. Late to recognize the error of his ways his company shrunk and an outside investor bought himself onto the board replacing him with Mr. French and reversing his grand vision. Remember that before this fiasco, Cirrus was a profitable company in a niche market. Hopefully, after this it will return to profitability. The question is how much money Cirrus will have to pay to its partners to get out of this mess. That will determine the financial picture of the new company. Will they start out flush with cash or on the verge of bankruptcy? Your guess is as good as mine. Any ideas? John

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