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

To: FIFO_kid2 who wrote (1716)	12/24/1999 4:47:00 PM
From: Robert Sheldon	Respond to of 2702

~$0.85 per share is reasonable from existing business. If a large contract comes in for 3G handsets late in the year (and can be booked) OR a broadband wireless (LMDS or MMDS) OR a good sized optoelectric order (optical signal to wireless and back again) the estimate will be proven very low. Unit capacity for subscriber VCOs (running at 2 1/2 shifts per day) is about 18MM pieces. Really. The company has renegiotated its banking relationships such that credit has been extended to accomodate several years of very, very rapid expansion. It is important that you and other readers of this post not get mired in the whole subscriber VCO thing. The other two areas I mentioned could be equal or larger in size in terms of gross revenues. I might point out that the other two areas also have much higher margins than handsets. Regarding the WSJ rumors: The only way I could fathom a take out at this point is if someone really wanted the patents. For those, a buyer looking at very large quantity production may pay up into the stratosphere (materials, processes & components). In short, VARL has a very bright future.