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Technology Stocks : SWKS - Skyworks Solutions, Inc (was AHAA) -- Ignore unavailable to you. Want to Upgrade?

To: Marc who wrote (725)	10/18/2000 3:07:11 PM
From: All Mtn Ski	Respond to of 1698

Exactly, analysts are worthless. USB Warburg downgraded the whole semi-equip group today as well, good timing after a 50%-60% haircut eh? How much do these people get paid? Only an hour or so, and I'll either be rich or look like a total fool. (Been there done that) <BG> Tom

To: Marc who wrote (725)	10/21/2000 1:08:24 PM
From: All Mtn Ski	Read Replies (1) \| Respond to of 1698

AHAA 2Q CC notes The theme of this call was: Broadband Broadband Broadband And that was evident by this stat: Broadband revenues were up 35% sequentially from the 1st Qtr to 20% of overall revenues. The company is really making an effort to expand its market share in this arena. A great call: 2nd Qtr review: -Operating margins going up and expanding to 20% by FY end 2001 (March 2001) -Company feels it is hitting its goals on its 3 targets: 1)Penetrate Broadband 2)Diversify Handset base (very aggressively) 3)Increase content per platform -Broadband accelerating rapidly -Beyond their expectations -Broadband will be a large focus for the company -Mot 25% of revs, ERICY 14% of revs (mostly infrastructure) -A very successful Qtr strategically -NT is winning in optics and thus AHAA will penerate and win due to the preferred supplier designation announced earlier this Qtr. AHAA is a technology partner on designs and aligning both company's technology roadmaps. (Key to long-term success, IMHO) -High demand for products -Gross margins up 1.10% Seq. -Operating margins up 1.40% Seq. (Wow!) -Company is decreasing manufacturing costs due the the leveraging nature of CAPEX, and thus margins will continue to expand. -Now expects an 85% improvement in operating income over last year. (FY 2000) (Wow!) -CAPEX to be $60-$65 mil in FY 2001 -AHAA is posting a 25.4% return on invested capital, and expects that to continue. (Wow!) -11 Inventory turns in the Qtr. (I think that is why the book to bill is a less significant indicator for AHAA) CEO David Aldrich -Broadband is a major focus for the Company and plays to their strengths. Their chips are in: -Fiber Optic Transport platforms and nodes, the backbone of the fiber network -Access products like CATV, LAN, etc,whatever the point of contact with the fiber network may be -CATV: 2 new Asian customers this Qtr -Broadband complex and AHAA has the solutions -GaAs switches in these applications -As the optical technology accelerates, OC 192 and up, a GaAs solution is needed more. AHAA is focused on meeting this demand. -Backlog going up, 3Q tracking as expected and visability is improving over the 2Q for both the 3Q and 4Q. MOT -Design wins in 3 new phones, both PAs and switches: -The Accompli, V series dual band and a GSM mid tier -Doing infrastructure biz with ERICY -NOK and ALA biz up and more design wins, -NOK biz is infrastructure, and "going well" -Getting closer to handsets with NOK -AHAA feels it has the tech NOK needs, and has field engineers at NOK, but no orders yet. -New Products: -InGap HBT PAs showing strong results in the market -AHAA is capitalizing on offering a more integrated solution to its customers. (Modules) -Integration is here to stay, customer needs it to have less design time and faster time to market, to stay ahead. -Continuing move from SI to GaAs (especially in switches) -Emerging OEMs present a good market for AHAA -Have to use integrated solution, because they have no expertise in the area and are playing "catch up" to the big boys. -AHAA wants to be their RF partner -Modules have switches, PA and discretes -AHAA feels its modules are very competitive -6 inch conversion has begun and should further leverage AHAA's business postively -AHAA feels it has been good at staying ahead of the demand curve through its CAPEX -AHAA increasing content per phone -The move from SI to GaAs switches is a real "Sweet Spot" for the company Some Q&A: Handsets: -"Wasn't our best quarter" but said it is improving this quarter. -Sees a healthier 3Q and 4Q for revs, outlook and billings. Europe: -AHAA gained share in GSM through 2nd tier OEMs -Low tier products are mucher better than just a year ago, they have more functions, smaller, lighter and are meeting the demands of the market. AHAA provides those functions via modules. CEO said these phones have to perform well to succeed in the market and AHAA provides the solution. -OEMs are looking for a supplier with a broad portfolio of products, and AHAA is that supplier. Link to the Call replay: corporate-ir.net Again this call made my day. 85% increase in operating income for FY 2001 should be a major catalyst for AHAA's stock price. Now I further understand why AHAA made such a move in 2 days, and why it will go higher still. Cheers, Tom