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To: Madharry who wrote (8602)	9/27/2000 11:53:40 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 9582

[Briefing.com] Silicon Storage (SSTI) 28 3/8 +2 3/8: It's nice to get some good news from a chip maker for a change. SSTI pre-reported after the close yesterday that it expects to report Q3 revenue north of $150 mln, a 45% sequential improvement and 325% yoy. EPS should come in greater than $0.35 vs consensus of $0.25 when the company reports Oct 12. The company was also bullish for next year stating that demand should continue to outstrip capacity well into 2001. How are they able to do this in light of Intel's warning? Better-than-expected yield improvements, production ramp-up at certain foundry partners of several new products and a diversified product offering with over 50 types of end applications for its flash products. Also, a healthy sign is that SSTI expects to continue increasing capacity to meet growing demand. SSTI has made it a habit of pre-reporting better-than-expected results....Pricing has remained strong at SSTI particularly for its low density Flash memory products as set-top boxes, optical drives, and DSL and cable modems are fueling demand for low density Flash. Furthermore, most Flash manufacturers are increasingly moving upstream to the higher priced high-density Flash market leaving SSTI to ship high levels of low-density Flash. Management expects pricing to remain strong for the next several quarters and the company is accepting orders as far out as Q2 2001....Looking forward, the company has several new initiatives which should continue to pad its top line. In March, SSTI signed a deal with Intel in which Intel licensed SST to supply flash memory products compatible with Intel's 800 Series Hub Architecture chipsets and also agreed to provide SST information relating to Intel's 82802 Firmware Hub interface. With every Intel chipset shipped using Firmware Hub, SSTI has a major opportunity going forward - an opportunity that alone could add $40 mln in revenue over the second half of 2000....The stock was cut in half after an early July downgrade from Salomon to Neutral from Buy, however, the stock is almost back to that level. (chart)...With SSTI, investors have been undeterred by the overall chip market fears as the company continues to post solid numbers coupled with its exciting new initiatives.