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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: kern who wrote (1068)	7/19/1999 10:00:00 PM
From: Robert Sheldon	Read Replies (1) \| Respond to of 2702

I own quite a bit of this stock. What type of number do you think they will print WED? REV Growth? EPS? Heck! If you owned one share I would still tell you! Its nice to see some activity on the board with the stock shooting skyward . . . I am looking for $0.14 . . . BUT, with the right product mix $0.15 or $0.16 may be reported. I am hesitant to give out estimated revenue numbers . . . I will say that this quarter should be the tip of the mountain of earnings we will see from VARL over the next several quarters. Everything is going well for this company.

To: kern who wrote (1068)	7/19/1999 10:09:00 PM
From: Robert Sheldon	Read Replies (2) \| Respond to of 2702

Regarding QCOM reports of Component shortages: I was on the QCOM conference call this afternoon where it was confirmed that not only QCOM, but ERICY, MOT, and NOK, were all seeing component shortages across all areas (screens, filters, VCOs, etc). While I think that some analysts have been mislead by the implications (not as dire as some would have you believe), this could be VERY big for VARL. This combined with the rumor (confirmed from various industry sources, but not in the form of a press release) that NOK just moved VARL to a “Preferred Provider” status from a “Qualified Provider”. What this means is that VARL will further lock up its stranglehold on commercial VCOs, AND it will be providing NOK with VCOs for handsets. Why is this significant? NOK should produce around 90 million handsets over the next twelve months. With two VCOs required for each handset, this means that NOK will have a demand for 180 million VCOs. If VARL even gets orders for just 10% (18 million VCOs) of what NOK needs that would DOUBLE gross revenues for VARL. Add to this an apparent component shortage and we could really see some earnings growth.

To: kern who wrote (1068)	7/19/1999 10:21:00 PM
From: Robert Sheldon	Respond to of 2702

Regarding Capacity: Recent articles from Individual Investor Online and Dow Theory Forecasts inaccurately (to the low side) state VARL's capacity. In this weeks Dow Theory Forecasts (RATED VARL A NEW “BUY”) it was stated that capacity was around 8 million VCOs per year. A similar write up appeared in Individual Investor Online. This is simply not accurate The real capacity is closer to ~18-20 million VCOs. I've personally toured the facilities and have spoken to their engineers . . . the maximum capacity for the line is as follows: If the line is running at 80% for 8 hours a day, five days a week, it can produce 5MM components. Assuming that 20% of the time is needed for maintenance & upkeep each shift, this translates to 18.75MM components per year. But of course their engineers are confident that another 1.25MM pieces could easily be squeezed in. Finally, if the line were to run on the weekends capacity could be much higher. Please note that the 10K does note the 8 million number. But this is only based on the one shift mentioned above. The SEC filings are generally conservative, and usually refer to one shift worth of work. It is good that the company uses conservative numbers in its filings, that way idiot attorneys would have a tough time filing a class action suit should the company ever stumble – in other words management can not be accused of too much cheerleading.