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Technology Stocks : Semtech (Nasdaq:SMTC) -- Ignore unavailable to you. Want to Upgrade?

To: TimeToMakeTheInvs who wrote (1084)	5/22/2000 8:07:00 PM
From: Leeza Rodriguez	Respond to of 1225

Conf call tidbits: 1) gross margins are going to increase on a sequential quarterly basis (~40-50 basis points), every quarter, FOR SEVERAL YEARS. Some acceleration may be experienced. GM increase due to four factors, the first of which is an expected ramp into WAN Communication gear beginning in June/July. SMTC has a large number of design wins in this area which will manifest as revenue in the 2H--> the following year. 2)they have been very conservative in their estimates to analysts. (Poe: 'I would not dare use the numbers that some customers are projecting'= implying that the revenue numbers could be much larger) 3) Poe: in his 15 years at SMTC he has never seen as much enthusiasm for a new product as seen for the new WAN infrastructure product (has to do with clocking functions for ATM/Sonet) 4) Projections for growth in 2001 will be above the historical average 5) OEM inventories ARE LOW--all Y2K excess inventory has been sold (Yesss!) 6) Management sounded very confident about the marketplace and the outlook for the company My summary: This story is reminding me VERY MUCH of where PMCS was 3 years ago, when they started focusing heavily/exclusively on the WAN infrastructure buildout. The good news is that the SMTC story could get even more interesting because analog engineers are a scarce commodity. As more bits pass thru the WAN at faster and faster speeds, very sophisticated analog components will be needed. There are just not that many companies that are capable of entering this biz at this point in time. Hang in there longs. The big ramp will come in the second half. We're only got 37 Mill shares. IMO, we've got a lot of splitzies to go over the next few years. Leeza Rodriguez