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Technology Stocks : Xicor ? -- Ignore unavailable to you. Want to Upgrade?

To: stock talk who wrote (2355)	7/22/1999 5:35:00 PM
From: steve olivier	Read Replies (4) \| Respond to of 2920

My comments on the quarter and cc: Sales up 12% sequentially from Q1 BTB > 1 Expect modest sequential sales increase in Q3 Seeing some improvement in Asia, x Japan. Japan hasn't really kicked in yet Continuing to get design wins 80% of new products are non memory Battery management chips are sampling GM improved 7.7% from Q2. 2% of this improvement due to Yamaha production (this seems low to me) Expect GM to improve in Q3 No C7 production until 2000. Will have positive effect on margins $1.3mm of cash generated from operations in Q2. The guy from SB can quit worrying about cash! Paid down $2mm of debt in Q3. $16.5mm now outstanding. Fab could possibility be sold Assuming a 3% sequential improvement in the gross margins and a 5% sequential sales increase, my estimates for Q3 (excluding any special charges)are as follows: Sales 30.1mm COS 21.4mm R&D 3.8mm SG&A 5.6mm EPS (0.04) I am hoping they take a write off of the fab in Q3. I don't know what fabs are worth these days, but if we assume it is something close to bv, then they could sell the fab, pay off the remaining debt and put $15mm in the bank! Then going forward, they would get rid of approximately $3mm of depr per quarter and not considering any other gm efficiencies, the gm could pop into the 35% area. If that were to happen and assuming a small sequential sales increase in Q4 vs Q3, we could get something on the order of $0.08 - $0.10 profit in Q4. I won't even post what I think year 2000 could be. In summary, if you can have a longer than 3 month view of life, I think there is a major wealth building opportunity here. Any weakness should be bought. SJO