Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Atmel - the trend is about to change -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (11885)	10/19/2000 7:21:46 PM
From: cfoe	Read Replies (4) \| Respond to of 13565

Here is m y brief overview of conference call. No detail, since I find it hard to get "the essence" when I trying to take detailed notes. Bottom line - this is one very well-run company. Every analyst congratulated them - I think without any exception. All answers were crisp, clear, and to-the-point. Great answer near end about how good were the long-term supply contracts. In particular, the analyst asked what "teeth" the agreements had. Answer was they are only taking them were customer is willing to put their money where their mouth is. From Siemens they got the plant at a good price. From a 2nd customer, who they said they could not name, they got $100 million up front. More importantly management pointed out that this showed how strong the customers feel future demand will be for products like ATMEL's. Also, asked question about breakeven on new Scotland plant. With the incentives from English government, b/e is 1,000 wafers a week. They compared this to the new Texas plant that without similar breaks will have a b/e of 1,300 to 1,400 wafers a week. Only "negative" is that future growth will be capacity "constrained" to high single digits, which works out to 33%+ per year. However, we should expect continued improvement in margins, especially net operating margin moving to around 28% by 2002. The management kept reminding the analysts that they gave lower guidance from handsets last quarter and had been including this in the future guidance. They saw the handset softness ending beginning after the current quarter (calendar q4). Finally, the CEO made it very clear that they are committed to staying in the high-end flash business and not getting "seduced" back into the commodity end because of relatively high current demand there. That's about what I remember. who knows what the stock will do tomorrow, but I am certain the analysts will be singing ATML's priases. I certainly am.