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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (4211)	9/27/2002 1:45:07 PM
From: The Ox	Respond to of 4710

ATMI UPDATES OUTLOOK FOR 3rd QUARTER DANBURY, CT - September 26, 2002 - ATMI, Inc. (Nasdaq: ATMI), a supplier of materials and services to the world's leading semiconductor manufacturers, today announced it expects to report an operating loss of between $0.05 to $0.10 per fully diluted share, excluding any special charges, for the third quarter ended September 30th. Revenues are expected to be about 35% higher than the third quarter a year ago, but between 5% to 8% lower than those of the second quarter of 2002. The Company will announce its third quarter financial results on October 16th prior to the opening of the Nasdaq stock market. "The lower than anticipated results are due primarily to slowing semiconductor wafer starts worldwide," said Gene Banucci, Chief Executive Officer. "The revenue shortfall also reflects lower order rates for our SDS(r) ion implant product as Asian customers, apparently worried about access to supplies, increased their inventories in the second quarter. We believe SDS continues to gain market share, but customers remain cautious about placing orders throughout the semiconductor food chain." "Obviously, we are concerned about the nature of this marketplace setback. We made very good financial progress during the first half of 2002, and continue to make excellent progress on new products. Nonetheless, it is not our nature to sit idly by waiting for the marketplace to fully recover. Our options are to further reduce our infrastructure - as many other companies in our market are now doing - or to take strategic action that will reposition ATMI to be even stronger when the marketplace fully recovers. Although we continue to take actions to trim infrastructure wherever possible, we primarily favor the latter course." "As our Gallium Arsenide epi business has continued to deteriorate, we intend to withdraw from that business by virtue of a sale or partnership. Although we have not made a determination of the specific amount, it is anticipated that a write-down of most of the estimated $40 million invested in the business will be required."

To: JakeStraw who wrote (4211)	9/27/2002 8:35:21 PM
From: mopgcw	Read Replies (1) \| Respond to of 4710

Here is the relevant piece from GS: Vitesse (VTSS; MP) Market cap: $168 million Q4 FY’02E (Sep): $39.0 million and ($0.09) Q1 FY’03E (Dec): $41.0 million and ($0.06) to $40.2 million and ($0.06) FY’02E (Sep): $163.3 million and ($0.42) FY’03E (Sep): from $195.4 million and ($0.13) to $182.5 million and ($0.17) Net cash: $17 million or $0.09/share We are lowering our estimates for Vitesse to reflect similar weakness in the telecom markets and more muted benefits from the company’s switch and optical transponder product cycles. While the datacom portion of the company’s business remains relatively healthy, we believe the continued weakness in telecom makes it more difficult for the company to achieve the material growth required to achieve its breakeven targets by year end 2003. We believe that in the absence of consolidation further cuts are likely as it is functioning with operating expenses of $50 million, which is still 2x the level that it had when its revenues were at similar levels in 1998. We are maintaining FQ4 (Sep) and full year FY’02 estimates of $39.0 million (down 9% sequentially) and LPS of ($0.09) and $163.3 million and LPS of ($0.42), respectively, but lowering our estimates for FY’03 from $195.4 million and LPS of ($0.13) to $182.5 million and LPS of ($0.17). The stock trades at 0.8x C’03 sales, which is at a discount to telecom-related peers given its relatively weak balance sheet; Vitesse has approximately $0.09 net cash per share and is expected to burn approximately $27 million in the September quarter, or approximately $0.14 per share.