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

To: pat mudge who wrote (1074)	7/20/1999 7:37:00 AM
From: Labrador	Respond to of 2702

I think that to really analyze VARL, its growth prospects and potential, you must breakdown its sales figures in components. The Company's growth to a degree is camouflaged by stagnant sales figures in wide-band VCOs, used industrial, military and aerospace. Where the real growth and potential comes to play is with commercial signal sources, narrow-band VCOs and subscriber products components used in hand-held telephone sets, pagers and other consumer-oriented products. The percentage of sales in the first 6-months of 1998 for commercial signal sources and narrow-band VCOs was 54%, compared with 41% in the first 6-months of 1997, while the industrial, military and aerospace percentages of sales were 25% compared with 31%in the prior year. Hence, industrial-type sales remaining flat and camouflaging the growth in commercial signal sources and narrow-band VCOs. In the first quarter of 1999, the Company grouped their sales a little differently, but one can see that the military-type sales had dropped to about 7% of sales, but that commercial signal source components including PLLs and narrow-band VCOs had increased to 68% of sales from 54% in the first quarter of 1998. Subscriber product components used in hand-held telephone sets, pagers and other consumer-oriented products increased to 12% of sales from 0%. My point – although sales increased by over 30% in the first quarter, the sales increase is really being camouflaged by stagnant growth in industrial, military and aerospace components. The growth of VARL lies with commercial signal sources and narrow-band components used in telephones, pages and other consumer products. The sales in these areas are increasing at a much rapid clip than 30% and should continue. This is where the growth is – the potential for rapid sales growth and earnings in these areas is why I am sitting tight on my shares of Vari-L. All this information is available in public filings, you just need to dig a bit.