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

To: voop who wrote (1584)	12/7/1999 10:41:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 2702

Is this a QCOM party!? <gg> MileHigh

To: voop who wrote (1584)	12/8/1999 1:54:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 2702

Good find Voop, The point that stands out from the post is the price erosion: >>Q: Pricing sequentially and year to year? >>A: Some price erosion, about 12% per year. Pricing pressure on the infrastructure built out world wide has been intense as LU, NT, ERIC and NOK and a few Japanese firms have been trying to under bid each other on contracts. It will be interesting to see how the revenue model and margin changes for VARL if they get a handset contract. As the carriers essentially subsidize the handset sales the pressure should be quite a bit higher. So while volumes and revenues may expand exponentially, profits may not grow quite as fast.